AMC challenges Robinhood over tokenised shares

• AMC Entertainment CEO Adam Aron said the company did not authorise Robinhood’s tokenised AMC shares.
• Robinhood’s stock tokens give investors economic exposure without ownership of the underlying shares.
• The dispute highlights growing questions over how companies and stocks are represented on blockchains.

AMC Entertainment CEO Adam Aron criticised Robinhood Markets over tokenised versions of AMC shares.

Aron said AMC had no connection to the product and did not approve or support the offering.

“Robinhood apparently is behind an effort related to ‘tokenised real-world assets including Stock Tokens’ for AMC Entertainment,” said AMC CEO Adam Aron.

Aron called the practice “contemptible” and “outrageous” and said AMC would ask outside securities lawyers to examine the issue.

Robinhood’s stock tokens are derivatives that provide economic exposure to US shares without giving holders ownership of those shares.

Robinhood has made tokenisation a major part of its crypto expansion and has launched tokens tracking hundreds of US stocks and ETFs.

The dispute highlights different tokenisation models, including derivatives, tokens backed by custodied shares and company-approved shares issued directly on blockchain networks.