AMC CEO challenges Robinhood’s 1:1 token backing

AMC Entertainment CEO Adam Aron has challenged Robinhood’s claimed 1:1 stock token backing by asking whether shares supporting the products could be lent to short sellers. Summary AMC CEO Adam Aron has questioned whether Robinhood lends shares supporting stock tokens to short-sellers. Robinhood describes each stock token as debt backed one-for-one by the corresponding underlying equity share. Stock token holders receive economic exposure and dividend adjustments but lack shareholder voting rights entirely. Robinhood Assets Jersey Limited issues the products, which remain unavailable to people in the U.S. Robinhood had not publicly answered Aron’s collateral-lending question when this report was prepared for publication. Aron’s Sept. 12 statement directed a series of questions to Robinhood CEO Vlad Tenev and Chief Legal Officer Dan Gallagher. The post followed their public defense of the company’s stock token business during the previous week. Among the questions, Aron asked whether a token could still be described as backed one-for-one if Robinhood lent its corresponding share to a short seller. He framed the scenario as hypothetical and did not present evidence that Robinhood curr...