Robinhood has launched a platform for trading stocks through tokens, which has drawn criticism from major companies. AMC CEO called the broker's offering "outrageous" and faced public backlash for using synthetic stocks without the consent of the issuing companies. AMC's stock surged by 21% overnight following the company's CEO's loud statement, as reported by The Block. The criticism highlights the risks associated with the fragmentation of stock ownership and the placement of assets outside traditional exchange systems.
The attitude towards tokenized securities remains ambiguous among Fortune 500 companies. OpenAI previously expressed similar objections, stating that it does not approve of moving its shares to the Robinhood platform for trading through tokens. According to CoinDesk, the incident raises questions about the regulation of digital representations of physical assets and the right of companies to control the distribution of their own securities. Robinhood, positioning the innovation as a way to lower entry barriers for retail investors, has faced pushback from issuers who fear losing control over their shares and unwanted dilution of ownership.
The conflict surrounding synthetic stocks reflects a broader discussion about the boundaries of fintech and corporate rights. Companies demand explicit consent before their securities are used in any form, including tokenization. The risk of "multiplying" synthetic versions of the same stocks could lead to issues with accounting for actual ownership and undermine market transparency. The situation demonstrates that the regulation of digital representations of traditional assets requires clear legislative definitions, especially considering the increasing number of such platforms.