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Robinhood CEO Vlad Tenev has defended the company’s Stock Tokens after AMC Entertainment CEO Adam Aron challenged the products and called for trading in AMC-linked tokens to stop. Tenev said companies should control the shares they issue but should not automatically control separate financial products that reference those shares.
Tenev Defends Robinhood’s Stock Token Model
Tenev addressed the dispute in a Sept. 9 television interview, arguing that whether issuer consent is required depends on how a product referencing its shares is structured. He said Robinhood’s Stock Tokens are securities issued by a separate entity and backed by underlying shares.
His comments followed an earlier public response to Aron in which Tenev wrote: “We stand behind Stock Tokens.” Tenev has also argued that tokenization could expand global access to U.S. financial assets and enable features such as 24/7 trading and, where supported, self-custody.
AMC Says It Did Not Approve the Token
Aron began criticizing Robinhood’s AMC-linked token on Sept. 3, saying AMC had no involvement in or approval of the product. He also objected to the lack of voting rights and other shareholder rights attached to the token.
Aron called on Robinhood to stop offering the AMC-linked product and said AMC’s securities counsel would examine possible action. No court or regulator has determined that Robinhood’s product violates U.S. securities law.
Stock Tokens Are Not AMC Shares
Robinhood’s documentation describes Stock Tokens as tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They provide economic exposure to underlying U.S. stocks and ETFs but do not give holders legal or beneficial ownership rights in the companies whose shares they reference.
Robinhood says Stock Tokens are backed 1:1 by the corresponding value of underlying equity held through a U.S.-based custodian. Token holders own the Robinhood-issued security rather than the underlying AMC share.
The products are not registered under U.S. securities laws and cannot be offered or sold to U.S. persons. Tenev has also acknowledged that Stock Token holders do not receive voting rights in the underlying company.
Robinhood Continues Stock Token Rollout
Robinhood launched its current Stock Token offering on July 1 alongside the rollout of Robinhood Chain. The company says the products are available to eligible users in more than 120 countries, subject to local restrictions.
The dispute centers on whether the company whose shares are referenced should have authority over a separate financial product tied to those shares. Aron wants Robinhood to stop offering the AMC-linked token, while Tenev maintains that such products should not automatically require the underlying company’s permission.
