Robinhood announced it will incorporate voting rights and in-kind redemptions for holders of its stock tokens. The move seeks to address criticism of its tokenized shares program.
CEO Vlad Tenev confirmed the decision through a social media post: “In-kind redemptions and voting rights are coming to Robinhood Stock Tokens.” The company later expanded the announcement with a formal statement specifying that it is actively working on 1:1 redemptions with voting rights for eligible holders of its tokens.
The initiative comes amid a dispute with AMC Entertainment, whose theater chain publicly rejected the tokenized version of its shares that Robinhood offers without authorization from the company, noting that holders lack the rights of traditional shareholders.
The U.S. Securities and Exchange Commission established that companies can tokenize their own securities while preserving the relationship between issuer and shareholder, though few have done so until now. With the addition of in-kind redemptions, investors will be able to redeem a token for its underlying share.
Coinbase Global is moving in the same direction: its tokenized shares already support 1:1 redemptions and will also add voting rights.
Source: https://x.com/vladtenev/status/2099546848558305423
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