Robinhood upgrades dividend entitlements for stock tokens, with automatic crediting on ex-dividend dates.
1 hours ago
Johann Kerbrat, general manager of Robinhood’s International and Crypto Business, stated that Robinhood has upgraded the dividend entitlement processing mechanism for stock tokens. The relevant entitlements will now be automatically credited on the ex-dividend date, rather than waiting until the dividend payment date weeks later. This allows holders to access economic benefits closer to those of the underlying stock faster, reduces dividend dilution after the ex-dividend date, and makes token pricing more closely aligned. The feature currently covers most stock tokens, and will be expanded to more products in the future. Robinhood also emphasized that stock tokens are tokenized debt securities, not offered to U.S. persons or in the United States, and are restricted in jurisdictions including Canada, the United Kingdom, and Switzerland.
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