Huo Xing Cai Jing reports that on September 9, according to CNBC, Robinhood CEO Vlad Tenev responded to criticisms from AMC CEO Adam Aron regarding the stock token business, stating that once a company is publicly listed, its shares become transferable property, and other financial institutions should be able to create financial products referencing those shares without requiring the issuer’s permission. Tenev emphasized that while public companies have the right to control the rights and obligations associated with their own issued shares, they cannot control other companies issuing securities referenced to their stock. Robinhood’s stock tokens are issued by an independent entity and are backed by the underlying shares, so automatic approval from the public company should not be required. Tenev also acknowledged that holders of stock tokens do not possess voting rights in the underlying company; these tokens are designed as debt securities backed by the underlying shares. Regarding how Robinhood will exercise the voting rights attached to the underlying shares, the company has not yet disclosed any plans.
Robinhood CEO Responds to AMC Criticism Regarding Stock Token Products
MarsBitShare
Summary
Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron’s criticism of stock token products, asserting that publicly traded stocks are transferable assets. He argued that financial institutions should be permitted to create products tied to these stocks without requiring approval from the issuing companies. Robinhood’s stock tokens are issued by third parties and backed by underlying shares, eliminating the need for automatic consent from listed firms. Tenev also emphasized that token holders do not possess voting rights, as the tokens are structured as debt instruments. The exchange has not yet specified any plans to link voting rights to the underlying stocks. New token listings continue to generate debate among market participants.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.