Legal discussions arise over tokenized pre-IPO shares at Consensus Hong Kong 2026.

Ultan Miller promotes a blockchain-driven pre-IPO index, while detractors caution that unauthorized equity tokenization could lead to legal issues and investor repercussions.

Hecto Finance’s Ultan Miller discusses tokenized equity with CoinDesk during Consensus Hong Kong 2026. (Photo by Olivier Acuna/Modified by CoinDesk)

Key points:

• Hecto Finance intends to create a tokenized index of pre-IPO “Hectocorn” companies such as OpenAI, SpaceX, and ByteDance, providing public investors with on-chain access to prestigious private firms.
• Proponents argue that this tokenization could expand opportunities in high-growth private markets, but opponents caution that proceeding without issuer approval could lead to legal ambiguity, inadequate investor protections, and reputational harm.
• The tension between Hecto’s ambitions and the concerns voiced by industry professionals, alongside incidents like Robinhood’s controversial OpenAI tokens, illustrates how tokenized private equity is advancing faster than regulatory frameworks and corporate acceptance.

During an interview with CoinDesk at Consensus Hong Kong 2026, Ultan Miller, CEO of Hecto Finance, articulated a visionary concept: a blockchain-native connection to the world’s most valuable private enterprises, which have traditionally been inaccessible to average investors.

However, his approach and the controversy it generates underscore how the tokenization of private equity is progressing more rapidly than both legal structures and corporate agreement.

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Hecto promotes itself as constructing “the world’s first tokenized pre-IPO company index,” aimed at granting public investors access to firms that have typically remained behind closed doors until their public debut. Miller indicated that the index is being developed on the Canton Network, an institutional blockchain designed to facilitate privacy, compliance, and programmable settlement, features he asserts are crucial for integrating traditional securities onto blockchain platforms at scale.

Edwin Mata, CEO and co-founder of the tokenization platform Brickken, expressed a markedly different viewpoint at the same conference. Mata, who also took part in CoinDesk’s PitchFest competition, cautioned that tokenizing company shares without the issuer’s awareness or consent jeopardizes both investor protection and market integrity.

With the tokenization of real-world assets projected to evolve into a $30 trillion industry by 2030, Mata remarked that an increasing number of inexperienced participants are entering the field in pursuit of rapid profits.

“This poses a risk for disorder, subpar projects, and significant losses for investors drawn into initiatives lacking sound foundations, particularly those deficient in expertise regarding securities structuring, issuance mechanics, and corporate law,” Mata cautioned.

Robinhood backlash emphasizes the friction

Doubt regarding tokenized private equity is not merely hypothetical. In June 2025, Robinhood declared its intention to provide tokenized equities in Europe and initiated a limited giveaway of equity-linked tokens associated with OpenAI and SpaceX.

OpenAI reacted publicly.

“These ‘OpenAI tokens’ are not OpenAI equity,” the organization stated. “We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval — we did not approve any transfer. Please be careful.”

This incident highlighted the fundamental issue confronting the sector: when third parties create blockchain-based instruments referencing private companies, what are investors actually acquiring and who authorized it?

Miller: ‘A grey area’ for the time being

Miller, who previously established one of the first digital asset investment banks regulated by the U.K. Financial Conduct Authority (FCA), acknowledged the existing tension alongside his co-founders, which include former executives from Goldman Sachs and Barclays, but asserted that their model is distinct. He characterized the sector as operating within a “grey area,” suggesting that incentives may align over time as regulations evolve and market demand solidifies.

Rather than viewing tokenization as a legal loophole, Miller described it as part of an inevitable shift of traditional securities onto programmable infrastructures. He contended that as companies stay private for longer durations and valuations rise in secondary markets, the demand for broader access will persist.

Hecto’s social media channels also reflect active ecosystem development and community involvement, positioning the product as a tangible effort connecting with institutional custody solutions and on-chain governance frameworks.

The pre-IPO Index: Hectocorns and institutional frameworks

Miller positions Hecto’s initial offering around a selection of elite private companies, referred to by him as “Hectocorns,” with valuations exceeding $100 billion, including SpaceX, OpenAI, ByteDance, xAI, Stripe, Tether, and Anthropic.

The goal is to encapsulate exposure to this collection into a single on-chain token, allowing investors to achieve diversified access through a programmable instrument instead of individual share acquisitions.

The Hecto CEO clarified that the token operates by having investors contribute capital into a vault, after which the protocol generates tokens that represent proportional exposure to the overall performance of the basket.

The index is dynamic and rules-based: if a company undergoes an IPO or liquidity event, the proceeds are allocated to a liquidity pool used for token buybacks, potentially benefiting remaining holders. Governance token holders also have the authority to vote on future index composition.

Miller’s broader perspective is structural. He argues that public markets no longer delineate an era; instead, substantial private companies generate value long before formal IPOs. In his view, tokenization serves as the crucial link between the growth of private enterprises and broader investor access.

The regulatory and legal divide

Nonetheless, even as Miller advocates for the mechanics, the legal underpinnings remain unresolved.

Mata highlighted that equity tokenization does not change the legal characteristics of shares. It serves as a technological enhancement to traditional shareholding, governed by corporate law and documentation, rather than deriving legitimacy from blockchain technology itself.

If the issuer provides consent and securities regulations are adhered to, tokenization can enhance recordkeeping and transfer processes, he added. In the absence of these, it risks misrepresenting rights and exposing investors to governance uncertainties.

Mata further emphasized that tokenization does not inherently create liquidity. Genuine liquidity necessitates compliant secondary markets, reliable settlement infrastructure, investor interest, and regulatory clarity — aspects that are still evolving across various jurisdictions.

Uncertainty surrounding voting rights, dividend entitlements, and transferability, he stated, introduces both legal and reputational risks.

Market implications and investor access

If Hecto’s index succeeds, it could signify a significant transformation in how exposure to private markets is distributed by integrating high-growth private company access into programmable blockchain instruments.

However, without issuer collaboration, clear adherence to securities regulations, and effective secondary markets, the potential of tokenized private equity may be limited by the same foundational challenges it seeks to address.

During Consensus Hong Kong 2026, one conclusion emerged: the tokenization of private equity has evolved beyond an experiment and is now an emerging asset class with inherent challenges.