Bitfinex Securities says the debate over tokenized stocks should not focus solely on whether the company behind a share has approved the product, but on what each token represents, who can buy it and where it can be traded.
Jesse Knutson, the company’s head of operations, told crypto.news that Robinhood chief executive Vlad Tenev was “directionally correct” to reject a blanket issuer veto. Tenev has argued that companies should not control products that neither alter their shareholder registers nor create new obligations for them.
Knutson said traditional markets already allow third parties to create instruments linked to listed securities, citing unsponsored depositary receipts. For large public companies, tokenized products may be easier to structure because investors can access financial statements, public filings and market prices.
However, tokens carrying the same company name can have very different legal terms. One may be a debt security tracking a share price, another a beneficial interest in shares held by a custodian, while an issuer-sponsored product may place registered equity onchain with the rights of an ordinary share.
Robinhood’s Stock Tokens are described as transferable tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They provide economic exposure to a referenced stock, but holders do not become shareholders or receive voting rights.
The distinction became apparent in September when AMC Entertainment chief executive Adam Aron rejected an AMC-linked token, saying the theatre chain had neither approved nor helped create it.
Private-company products
Knutson said products linked to private companies raise greater information concerns. Unlike listed businesses, private companies do not generally provide continuous disclosure, public filings or regular price discovery. Token buyers may therefore have less information than people holding a direct stake.
OpenAI made a similar objection in July 2025 after Robinhood offered eligible European customers token exposure linked to OpenAI and SpaceX. OpenAI said the tokens were not its equity and that it had not partnered with or endorsed Robinhood’s product.
Robinhood said the OpenAI exposure came through a special-purpose vehicle holding an economic interest linked to the company, rather than shares issued directly by OpenAI.
Trading restrictions and market oversight
Knutson said tokenized securities also require protocol-level controls to prevent transfers into sanctioned or prohibited markets.
“Listed companies obviously don’t want tokenized versions of their stocks ending up in sanctioned or prohibited jurisdictions,” he said.
Robinhood bars U.S. persons from acquiring its Jersey-issued Stock Tokens. Its documentation says they are not registered under the U.S. Securities Act and cannot be offered, sold or delivered in the United States or to American investors.
Knutson also warned that limited surveillance on trading platforms could affect price discovery. Blockchain markets can operate continuously, including when U.S. exchanges are closed, allowing prices to move during weekends and American holidays without immediate arbitrage against the listed share.
Coinbase introduced products on Base in August representing beneficial interests in shares held through segregated custody, initially covering Nvidia, Meta, Apple and Alphabet. Alpaca Securities buys one underlying share for each token issued, while a Coinbase-controlled company in the Abu Dhabi Global Market issues the securities.
Coinbase’s prospectuses distinguish beneficial ownership from being listed on a company’s shareholder register. Verified holders may submit voting instructions, subject to legal, operational and timing limits. Dividends are generally reinvested after fees and U.S. withholding tax, while redemptions may be requested in shares, dollars or an accepted stablecoin.
Robinhood holders instead have contractual claims against its Jersey issuer. Knutson said issuer-sponsored products could offer “greater transparency over ownership and potentially greater control over how the security operates”, but added that both sponsored and third-party models may continue to exist.
