- Robinhood CEO Vlad Tenev announced plans to introduce in-kind redemption and voting rights for its stock token offerings.
- The move comes amid criticism from AMC CEO Adam Aron, who called the tokenization practice “abhorrent” and threatened legal action.
- Deutsche Bank analyst Brian Bedell raised Robinhood’s price target to $138, citing strong August metrics in crypto and trading volumes.
Robinhood Markets Inc. (HOOD) plans to introduce share redemptions and voting rights to its stock token offering, even as criticism from market participants over its blockchain offerings has grown. CEO Vlad Tenev posted on X that “In-kind redemption and voting are coming for Robinhood Stock Tokens.”
Johann Kerbrat, Senior Vice President and General Manager of Crypto and International at Robinhood, stated on X that the company is actively working on these features. He outlined that “the first step would be to scale adoption of stock tokens.”
Robinhood operates a shareholder engagement platform, Say by Robinhood, which Kerbrat noted already facilitates shareholder voting. However, AMC Entertainment Holdings (AMC) CEO Adam Aron has pushed back against the tokenization, calling it “abhorrent” and threatening legal action over what he claims is an illegal practice.
Tenev has defended the offering, arguing that while a company controls the rights attached to its shares, it does not control every lawful use thereafter. Meanwhile, Deutsche Bank analyst Brian Bedell raised Robinhood’s price target to $138 from $136 and maintained a Buy rating.
Bedell noted that Robinhood’s August metrics are tracking mostly in line with its third-quarter estimates. The company reported strong August growth, with funded customers rising to 28.6 million and platform assets up 26% year over year to $384 billion.
Equity and options trading volumes surged 68% and 50%, respectively, while event contracts jumped 15x year-over-year. Crypto volumes rose 61% month over month but fell 38% year over year.
The analyst said that strength in crypto volumes and continued growth in margin loans and cash sweep balances are being offset by lower-than-expected securities lending net revenue. Bedell added that the raised estimates and target were due to slightly better quarter-to-date volume trends.
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