Tokenized Stocks: Industry Debates Best Model Amid $2.9 Billion Market
The fight between AMC Entertainment CEO Adam Aron and Robinhood over tokenized AMC shares has spilled into an industry-wide debate over which stock token model is best. Three different models are competing for $2.91 billion in tokenized equities, with each having its own unique characteristics.
Uniswap founder Hayden Adams compared Robinhood's and Ondo's stock tokens to early stablecoins, saying they offer programmability and can be traded at any time. However, Dinari co-founder Gabriel Otte countered that these synthetic tokens are 'indisputably worse for the end investor' than common stocks.
The SEC has already mapped out the three categories of tokenized stock models, with each determining which securities laws apply and what a holder can claim in bankruptcy. The staff flagged counterparty risks, saying holders may be exposed to risks from third-party intermediaries.