ChainCatcher report, according to CNBC, Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron’s criticism of the stock token business, stating that once a company is public, 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 said 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 they should not automatically require approval from the public company. 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. As for 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's Criticism of the Stock Token Business
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Summary
Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron’s criticism regarding stock token products, stating that publicly traded companies cannot control third-party financial instruments tied to their stock. Robinhood’s stock tokens are issued by independent entities and backed by underlying shares, requiring no automatic approval from the listed companies. Tenev noted that token holders do not have voting rights, as the products are structured as debt instruments. The exchange has not yet outlined plans for managing voting rights associated with the underlying assets. New token listings continue to grow as platforms like Robinhood advance with announcements of new token launches.
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