Robinhood plans to let holders of its Inventory Tokens redeem them for actual shares and vote these shares, the corporate’s crypto chief mentioned on Monday.
Johann Kerbrat, Robinhood’s senior vice chairman and basic supervisor of worldwide and crypto, set out the plan on X at 11:17 a.m. ET. “What about in-kind redemption and voting rights? Not but, however they’re coming,” he wrote. “The 1st step is to scale adoption of Inventory Tokens. We’re actively engaged on redemptions for shares 1:1 with voting for eligible Inventory Token holders on the roadmap.”
CEO Vlad Tenev reposted the thread at 1:12 p.m. ET with the road “In-kind redemption and voting are coming for Robinhood Inventory Tokens.” The 2 posts had drawn 244,000 and 294,700 views respectively by mid-afternoon. Robinhood has revealed no press launch on the change.
Money At Redemption
Delivering both one requires rewriting the providing paperwork that outline the product. Inventory Tokens are usually not shares. They’re tokenized debt securities issued from Jersey below a prospectus that settles each redemption in money, and the shares backing them could be lent to a borrower who retains the votes.
The bottom prospectus for the tokens, dated June 25 and authorised by the Monetary Market Authority Liechtenstein, solutions the redemption query instantly.
Beneath the heading “Can I bodily obtain the Underlying at redemption?” it reads: “No. Buyers are usually not entitled to obtain bodily supply of the related Underlying. At redemption, the Buyers will likely be entitled to obtain the Redemption Quantity, payable within the Specified Forex as money.”
The identical doc repeats the purpose in its phrases and circumstances. “Bodily supply of the Underlying and/or Collateral is excluded and Buyers’ pursuits will likely be settled within the Specified Forex as money within the occasion of a redemption or termination.”
Robinhood’s consumer-facing Inventory Tokens web page says holders “also can redeem them instantly with the Issuer, the place there is no such thing as a approved participant,” topic to KYC and anti-money-laundering checks. That redemption pays money. The issuer’s product web page units the redemption charge at zero for the primary 90 days after issuance and 0.05% after that.
The insolvency reply on the identical web page describes the identical settlement. If the issuer fails, “an unbiased safety agent will promote the underlying shares, and organize for the money proceeds to be paid to token holders.”
No Shareholder Rights
On voting, the prospectus is equally express. “The Buyers in a Product are usually not entitled to any rights or claims to the related Underlying apart from these described within the Phrases and Circumstances. Specifically, the Buyers would not have shareholder rights in respect of the related Underlying. Accordingly, Buyers would not have voting rights, participation or attendance rights, pre-emption rights in affords for subscription of securities referring to the related Underlying, any proper to share within the earnings of an issuer of such Underlying.”
That language is what Robinhood relied on when AMC Leisure CEO Adam Aron attacked the AMC inventory token this month. Chief Authorized Officer Dan Gallagher informed Aron to “ship your attorneys and we’ll educate them,” and the dispute was an argument throughout the sector over which tokenized inventory mannequin wins. Ondo International Markets has added proxy voting by way of Broadridge outdoors the US, and Dinari’s dShares could be burned for redemption at market worth.
The Shares Get Lent
The ultimate phrases for particular person tokens add a second impediment to passing votes by way of. The Apple collection, Sequence 14, states that “the Underlying could also be lent out to the Prime Borrower, who’s permitted to additional lend the Underlying to Finish Debtors and is obliged to offer an equal quantity of Collateral to the Issuer.”
Throughout a mortgage, the prospectus says, the borrower “retains all incidents of possession of the Lent Underlyings,” and “the Issuer waives voting rights and any rights to consent or take motion with respect to the Lent Underlyings in the course of the mortgage time period.”
The ultimate phrases additionally bear on the backing declare. Kerbrat wrote that “all Robinhood Inventory Tokens are backed 1:1 with actual shares in safe custody.” The Apple ultimate phrases say that the place shares have been lent, “the Merchandise in respect of such Sequence is not going to, to a higher extent, be backed or secured by the related Underlying themselves. As an alternative, the Prime Borrower is required to offer equal money or different Eligible Monetary Devices as Collateral, in an quantity equal to at the least 100% of the market worth of the Lent Underlyings.”
The prospectus says the issuer “will present data relating to the quantity of Lent Underlyings frequently on the Issuer Web site.” The issuer web site has sections for company actions, worth deviations, an FAQ, product particulars, service suppliers, restricted jurisdictions and disclosures. None of them carries a lending determine.
The custody associate Robinhood’s advertising and marketing web page leaves unnamed is disclosed within the service supplier listing: Alpaca Securities LLC of New York, which acts as each custodian and dealer. Bitstamp International Ltd, a British Virgin Islands entity within the group Robinhood completed shopping for on June 2, 2025, is the approved participant. Safety Agent Companies AG of Zug is the safety and verification agent, and JPMorgan Chase Financial institution’s London department holds the paying account.
Say Does The Voting
Kerbrat pointed to an present Robinhood asset because the mechanism for voting. “We run a shareholder engagement platform, Say by Robinhood, which permits shareholders to take part in actions like voting,” he wrote. Robinhood acquired Say Applied sciences in August 2021. The platform’s web page for firms affords to “attain shareholders with proxy supplies, prospectuses, shareholder assembly data, firm updates, livestream Q&A, and different regulated communications.”
Inventory Token holders maintain a declare on the issuer reasonably than the share, are recognized to Robinhood provided that they full the issuer’s KYC checks, and are usually not bought the tokens in any respect in the event that they reside in the USA, Canada, the UK or Switzerland.
$170M in Quantity
Kerbrat opened the thread with two figures: “Inventory Tokens TVL reaching over $170M and practically $50B in DEX quantity on the Robinhood Chain.”
The Robinhood Chain shares ecosystem holds $168.47 million throughout its tokens, with $212.08 million of 24-hour quantity, based on CoinGecko. The most important are tokenized SPY at $24.6 million, NVDA at $22.4 million and SpaceX at $11.2 million.
The $50 billion is chain-wide. Robinhood Chain carried $12.25 billion of decentralized trade quantity over seven days and $32.74 billion over 30, per DefiLlama, with complete worth locked at $916.6 million. Uniswap handles about 84% of it. The Defiant reported in July that the chain had handed Solana in tokenized inventory quantity on the energy of memecoin pairs, and this month that tokenized equities traded $1.01 billion over a weekend with US exchanges shut.
Robinhood lists greater than 190 Inventory Tokens. HOOD traded at $113.85 at 2:35 p.m. ET, up 1.1% on the day, per CNBC.
Onchain figures by way of DefiLlama and CoinGecko as of 18:30 UTC on Sept. 14. Authorized phrases by way of the RHJ base prospectus dated June 25, 2026 and the ultimate phrases for Sequence 14 (ISIN JE00BX9H9M76).
