The tokenization of private equity, particularly pre-IPO shares, ignited a sharp legal and regulatory debate at the Consensus Hong Kong 2026 conference, highlighting the rapid evolution of the sector against a backdrop of uncertain legal frameworks.
Hecto Finance CEO Ultan Miller presented a bold vision for a "blockchain-native bridge" to elite private companies like SpaceX, OpenAI, and Stripe, which he termed "Hectocorns." His firm is developing a tokenized pre-IPO company index on the Canton Network, designed to give public investors diversified exposure via a single on-chain token. Miller described the current environment as a "grey area" but argued tokenization is an inevitable transition of traditional securities onto programmable rails.
In stark contrast, Brickken CEO Edwin Mata warned that tokenizing shares without issuer knowledge or consent undermines investor protection and market credibility. He stressed that tokenization is merely a technological overlay governed by corporate law, not a source of legitimacy itself, and cautioned that a lack of securities structuring expertise among new entrants is a "recipe for chaos."
The theoretical debate was grounded by the real-world example of Robinhood's 2025 launch of tokenized equities linked to OpenAI and SpaceX in Europe. OpenAI publicly disavowed the tokens, stating they were not equity and were issued without its approval, crystallizing the core issue of authorization and investor rights.
Miller contends that as companies stay private longer, demand for such access will grow. Hecto's index is rules-based, with governance token holders voting on composition and proceeds from company exits used to buy back tokens. However, Mata emphasized that without issuer cooperation, compliant secondary markets, and regulatory clarity, tokenization cannot create real liquidity and introduces significant legal and reputational risks.
