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      Robinhood Will Add Stock Token Redemptions for Real Shares and Voting Rights

      • Robinhood is working on a 1:1 redemption feature for stock tokens into real shares.
      • The company also plans to add voting rights for holders of the relevant tokens.
      • Robinhood’s stock-token TVL has surpassed $170 million, and DEX trading volume on Robinhood Chain has neared $50 billion.

      Robinhood CEO Vlad Tenev said the company will soon add the ability to swap stock tokens (Stock Tokens) for real shares and will grant their holders voting rights.

      Robinhood’s head of crypto, Johann Kerbrat, noted that the platform’s stock-token TVL has already exceeded $170 million, while cumulative trading volume on decentralized exchanges on the Robinhood Chain network has neared $50 billion.

      How Do Robinhood Stock Tokens Work?

      According to Kerbrat, each Robinhood stock token is backed 1:1 by a real share. The securities are held in custody.

      When issuing a new stock token, Robinhood simultaneously buys the corresponding real share. Token holders also receive the economic equivalent of dividends and the outcomes of corporate actions in the form of reinvestment into their assets.

      At the same time, stock-token holders currently cannot redeem them directly for real shares and do not have voting rights.

      Kerbrat said Robinhood is already working on a 1:1 redemption feature. Voting rights are also on the company’s roadmap.

      According to him, Robinhood has the necessary infrastructure to roll out this functionality. In particular, the company runs the Say by Robinhood platform, which allows investors to take part in votes and other corporate processes.

      Kerbrat also emphasized the technological composability of stock tokens. According to him, developers can use them as a foundation to build new products and services. The Robinhood representative expects the number of such solutions to grow as stock tokens become more widely adopted.

      He also said tokenization could expand access to US investment assets. According to him, billions of people worldwide currently do not have access to the US stock market, while stock tokens allow eligible customers to access such assets using a smartphone and an internet connection.

      As a reminder, earlier the CEO of Robinhood spoke out against issuers’ right to block the tokenization of shares.

      Сообщение Robinhood Will Add Stock Token Redemptions for Real Shares and Voting Rights появились сначала на INCRYPTED.


      Source: Incrypted
      .

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