Robinhood says the redemption and voting features will be applied to stock tokens
Robinhood's CEO stated that Robinhood "is actively working to convert shares at a 1:1 ratio and bring voting rights for eligible Stock Token holders into the development roadmap."
9/16/20265 min read
What are current stock tokens in legal terms?
Robinhood launched its current generation of Stock Tokens in July 2026 through Robinhood Assets (Jersey) Limited. These tokens are tokenized debt securities linked to underlying US stocks or ETFs, traded on the Robinhood Chain, the company's Arbitrum-based Ethereum Layer 2 platform. Each token is secured one-to-one by corresponding equity held by a licensed US custodian, and holders receive economic benefits from price fluctuations plus dividend equivalents.
What the token holder doesn't receive is ownership. The legal owner of the custodial shares is the issuing entity, not the token holder. Robinhood's own documentation clarifies that the holder has no shareholder rights in the underlying companies. Token holders have claims against Robinhood Assets (Jersey) Limited, not against Apple, Tesla, or AMC.
The U.S. Securities and Exchange Commission (SEC) outlined three models for tokenized securities in a statement in January. Companies can tokenize their own securities, maintaining a relationship between the issuer and the shareholder. A third party could hold the common stock and issue tokens representing ownership in it, known as tokenized securities ownership. Or a company could issue a separate security that provides indirect exposure to the underlying stock without granting ownership to the token holder. Robinhood's Stock Tokens fall into the third category.
Compare Coinbase
The structure of Coinbase's tokenized securities is different; they are viewed as beneficial interests in the trust asset rather than debt securities providing indirect risk exposure. That difference is why Coinbase has supported the 1:1 share buyback and dividend distribution, with CEO Brian Armstrong stating that voting rights will also be added soon.
Structural differences determine what each company must do to add the redemption feature. For Coinbase, redemption fits into a beneficiary rights structure, where the holder already has a claim on the underlying trust asset. For Robinhood, redemption requires converting an existing instrument that denies any claim on the underlying asset into one that guarantees that claim, which means rewriting the offering documents defining the product.
Securitize CEO Carlos Domingo criticized Robinhood's approach as misleading to investors, a criticism all the more compelling given that the two products are marketed similarly while offering significantly different rights.
The AMC dispute and Tenev's position
Adam Aron's demand that Robinhood cease offering AMC-linked tokens raised questions about whether a listed company has any say in financial products that reference its stock. Tenev countered this premise, arguing that the issuing company controls the shares it issues and the rights attached to those shares, but not necessarily every independent financial instrument created around its market value. He drew an analogy to options, futures contracts, and other derivatives tied to listed stock, which are traded without the issuer's approval as a common market practice.
That argument is legitimate to some extent. No one asked Apple for permission to list Apple stock options. But it also acknowledges the view that Stock Tokens are more like derivatives than stocks, and that's precisely the criticism the buyback and voting announcement aims to address.
This timing suggests a clear inference, although no causal link has yet been established. Robinhood has not indicated whether the dispute with AMC was the cause of the roadmap leak, and the development work that Kerbrat describes as ongoing may have been underway before the dispute began last week.
What does it actually require to exercise the right of redemption and the right of voting?
Adding a right of redemption in kind means Robinhood must amend the underlying prospectus and final terms for each offering to create the rights not addressed in the current documents. This is a revision of the securities offering document, not a software update, and it requires the issuer to accept the delivery obligation that they explicitly declined at the time of issuance.
Voting raises another issue. The custodian holds shares on behalf of the issuing entity, and the issuing entity is the registered holder with voting rights. Transferring those votes to the token holder requires the issuer to vote on its shares according to instructions gathered from the token holder, which means establishing a mechanism for gathering instructions, determining eligibility, processing fractional positions, and meeting the timelines for recording dates and authorization requirements that corporate voting adheres to.
Kerbrat pointed to Say by Robinhood, the company's shareholder engagement platform, as the existing infrastructure for the voting component. Say was built to allow minority shareholders to ask questions and vote at company meetings, so the mechanism already exists. Linking it to a debt security issued by Jersey that holds non-shareholders is unprecedented. Neither feature has a specific timeline. Kerbrat's wording that the first step is scaling adoption suggests this sequence prioritizes user growth over structural changes, rather than the other way around.
Assessment and Conclusion
Currently, the competitive landscape includes Robinhood, Coinbase, Kraken, Nasdaq, and traditional exchanges, each pursuing a different structure and all facing the same unresolved legal question of what constitutes permitted tokenized equity.
Robinhood's broader reach remains constrained by geography. Stock Tokens are only available to eligible customers in Europe, not retail investors in the U.S., because the legal framework allowing access to tokenized securities domestically currently doesn't exist. Tenev has publicly campaigned for this framework, arguing in a statement in August that the U.S. risks ceding next-generation market infrastructure to foreign competitors, and the Senate vote on the CLARITY Act remains the primary legislative vehicle.
Therefore, the conversion and voting roadmap addresses a product criticism issue in the market where Robinhood currently operates, while the larger commercial reward, access to retail investors in the US, is dependent on legislation that Polymarket is currently pricing at around 15% for 2026. Deutsche Bank analyst Brian Bedell raised his price target for Robinhood stock to $138 from $136 and maintained his Buy rating. HOOD stock closed at $114.35 and is down nearly 1% year-to-date, while AMC stock has risen more than 55% over the same period.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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