Robinhood Vs. AMC: Vlad Tenev Responds to Tokenized Stock Criticism
Robinhood CEO Vlad Tenev stated public corporations shouldn’t be ready to veto tokenized inventory merchandise that create separate monetary devices with out altering shareholder rights, issuer obligations, or an organization’s official shareholder ledger.
The feedback, posted on X, responded to criticism from AMC Entertainment CEO Adam Aron over Robinhood’s AMC-linked tokens and highlighted a dispute over the construction and rights related to tokenized inventory merchandise.
This newest drama for Robinhood comes because the agency’s Layer-2 community approaches $1Bn in Total Value Locked (TVL) and the on-chain stablecoin market cap just lately surpassed $1Bn.
How Has Tenev Responded to the Criticism from AMC?
Tenev stated issuer consent relies on whether or not a tokenized product modifications the rights connected to the underlying shares, creates new obligations for the corporate or its switch agent, or replaces the authoritative shareholder file. Where these situations apply, he stated the issuer must be concerned.
By distinction, Tenev stated issuer consent shouldn’t be required when a product creates a separate monetary instrument that holds or references freely transferable shares with out altering the issuer’s rights, obligations or shareholder file. His place distinguishes a tokenized product from the underlying shares and focuses on the rights and obligations the product creates.
Tenev additionally in contrast the difficulty with present monetary devices that may reference public shares, together with choices, unsponsored American depositary receipts, and structured merchandise. His argument is that transferring a product onchain shouldn’t itself give an issuer management over a separate instrument tied to freely transferable shares.
Don’t Miss Out on Our $1,000 USDT Airdrop on ByBit
The Stock Structure Robinhood Is Defending
Robinhood says its Stock Tokens use a third-party construction during which individually issued devices are backed 1:1 by underlying shares. The merchandise present consumers with financial publicity to shares and exchange-traded funds with out putting token holders on an issuer’s shareholder register or altering the rights connected to the corporate’s inventory.
That distinction is central to the disagreement with AMC. Aron criticized Robinhood’s AMC-linked choices on Sept. 4, saying that AMC had no affiliation with the merchandise and that he would ask securities counsel to evaluate them.
Tenev’s subsequent feedback outlined Robinhood’s response: merchandise that depart shareholder rights, firm obligations, and the official shareholder file unchanged must be handled in a different way from merchandise that search to alter these parts. These differing views give attention to what token holders obtain and the way the instrument is structured.
Gain Access to New Bitcoin Layer 2 Early Here
Is the Robinhood-AMC Dispute a Broader RWA Tokenization Problem?
The Robinhood-AMC dispute displays a broader query for RWA tokenization: whether or not blockchain-based merchandise linked to publicly traded shares must be handled as shares themselves or as separate monetary merchandise.
The reply can have an effect on what rights consumers obtain, whether or not they seem on an organization’s shareholder file, and whether or not the issuer participates within the product.
The proof describes a number of approaches to placing inventory publicity on blockchains, together with artificial merchandise, standard shares held by custodians, and issuer-backed shares recorded straight on-chain.
Those approaches can confer completely different rights on consumers, making the product’s construction a central consideration slightly than merely whether or not it makes use of blockchain know-how.
Robinhood is fascinated with increasing its tokenized-stock mannequin. A Bernstein projection cited in reporting estimated that Robinhood Chain may generate $160M in annual charges by 2028.
Earn $50 and Enter $300K Prize Draw on EdgeX
The put up Robinhood Vs. AMC: Vlad Tenev Responds to Tokenized Stock Criticism appeared first on Cryptonews.
