Tenev Says Robinhood Stock Tokens Should Not Automatically Require Issuer Consent

Robinhood CEO Vlad Tenev said the company's stock tokens should not automatically be subject to approval from the issuer of the referenced shares, while acknowledging that holders of those tokens do not get the voting rights tied to the underlying stock. Speaking on CNBC's Squawk Box on Sept. 9, Tenev framed the tokens as separate securities that reference publicly traded shares rather than as shares placed natively on a blockchain.

Company disclosures identify the stock tokens as debt securities issued by Robinhood Assets (Jersey) Limited (RHJ). Robinhood says each token is backed one-for-one by the corresponding share, which is held by a U.S. custodian, and names Alpaca Securities LLC as a service provider and custodian. According to the firm's documentation, token holders receive economic exposure — including mechanisms that reinvest cash distributions into more underlying shares or increase a multiplier on the token — but they do not gain legal or beneficial ownership rights in the underlying issuer.

The token structure is the central point of contention with AMC Entertainment. AMC CEO Adam Aron has argued that the product severs demand for a token from the company’s capital-raising process and that the tokens do not confer shareholder rights, urging Robinhood to stop trading AMC-linked tokens and saying AMC’s securities counsel would explore whether it could force a halt. Aron posted his comments on X on Sept. 4.

Tenev countered that while issuers control the rights and obligations of the shares they issue, they do not automatically control other firms’ ability to create securities that reference those shares; he said issuer consent depends on the specific actions taken. The exchange did not settle two open questions: whether AMC has a legal path to block the tokens and who will direct the votes attached to the custody-held shares. Robinhood has not announced plans for handling the voting rights, and the product is not available to U.S. persons.