Speaking to CoinDesk at Consensus Hong Kong 2026, Hecto Finance CEO Ultan Miller laid out a bold vision: building a blockchain-native bridge to the world’s most valuable private companies that are out of reach for ordinary investors.
However, his strategy and the controversy it sparked underscore how tokenization in private equity is moving faster than legal frameworks and corporate consensus.
Hecto claims it is building “the world’s first tokenized pre-IPO company index,” aiming to give public investors exposure to companies that have traditionally remained closed until they go public. Miller said the index is being developed on the Canton Network, an institutional blockchain designed to support privacy, compliance and programmable settlement, features he claimed are critical to bringing traditional securities into the blockchain orbit at scale.
Edwin Mata, CEO and co-founder of tokenization platform Brickken, struck a contrasting tone at the same conference. Mata, who also participated in CoinDesk’s PitchFest competition, warned that tokenizing a company’s stock without the issuer’s knowledge or consent could harm investor protection and market credibility.
Mata said that the tokenization of real-world assets is expected to become a $30 trillion industry by 2030, and too many inexperienced players are entering the field in pursuit of quick profits.
“This can lead to confusion, low-quality projects and huge losses for investors who are attracted to businesses that do not have a solid foundation and, in particular, lack real expertise in security structures, issuance mechanisms and corporate law,” Matta warned.
Robin Hood backlash highlights tensions
Skepticism about tokenized private equity is not theoretical. In June 2025, Robinhood announced that it would offer tokenized stocks in Europe and launch limited giveaways of stock-related tokens related to OpenAI and SpaceX.
OpenAI responded publicly.
“These ‘OpenAI tokens’ are not OpenAI equity,” the company said. “We are not working with Robinhood, involved in this matter, and do not endorse it. Any transfer of OpenAI equity will require our approval – we have not approved any transfers. Please be careful.”
The incident shines a light on a core question facing the industry: When a third party creates a blockchain-based tool that references a private company, what exactly are investors buying and who authorizes it?
Miller: ‘Gray area’ right now
Miller, who preceded Hector in founding one of the first digital asset investment banks regulated by the UK Financial Conduct Authority (FCA), said he and his co-founders, including former executives from Goldman Sachs and Barclays, acknowledged the tension but insisted their structures were different. He described the sector as operating in a “grey area” and said incentives may adjust over time as regulations mature and market needs crystallize.
Rather than seeing tokenization as a legitimate solution, Miller described it as part of the inevitable transition of traditional securities to a programmable trajectory. He believes the need for broader access will continue to increase as companies stay private longer and secondary market valuations grow.
Hecto’s social channels also demonstrate active ecosystem growth and community engagement, positioning the product as more than just a theoretical construct, but a live network of efforts with institutional custody solutions and on-chain governance mechanisms.
Pre-IPO Index: Billion Stocks and Institutional Track
Miller designed Hecto’s first product around an elite group of private companies valued at more than $100 billion (which he calls “Hctocorns”), including SpaceX, OpenAI, ByteDance, xAI, Stripe, Tether, and Anthropic.
The idea is to incorporate this basket of exposure into a single on-chain token, giving investors access to diversified investment opportunities through programmable instruments rather than purchasing stocks individually.
The Hecto CEO explained that the token’s function is to allow investors to deposit funds into a vault, after which the protocol issues tokens that represent a proportional exposure to the overall performance of the basket.
The index is rules-based and dynamic: if a company exits via an IPO or liquidity event, proceeds will be channeled into a liquidity pool used to buy back tokens, potentially benefiting remaining holders. Governance token holders also vote on future index composition.
Miller’s broader thesis is structural. He believes that public markets no longer define an era; In contrast, large private companies create value long before traditional IPOs. In his view, tokenization is the missing link between private enterprise growth and broader investor access.
Regulatory and legal disagreements
Yet even as Miller generalized this mechanism, the legal foundation remained shaky.
Matta emphasized that tokenizing equity does not change the legal nature of the shares. It is a technological overlay of traditional equity, governed by corporate laws and documents, rather than deriving legitimacy from the blockchain itself.
He added that tokenization could modernize recordkeeping and transfer processes if issuers agree and comply with securities regulations. Otherwise, there is a risk of misrepresenting rights and exposing investors to governance uncertainty.
Mata also emphasized that tokenization does not automatically create liquidity. True liquidity requires compliant secondary markets, reliable settlement infrastructure, investor demand and regulatory clarity – elements that are still evolving across jurisdictions.
He said ambiguities around voting rights, dividend rights and transferability pose legal and reputational risks.
Market Impact and Investor Access
If Hecto’s index gains traction, it could represent a meaningful shift in how private market exposure is allocated by embedding high-growth private company exposure into programmable blockchain instruments.
However, without issuer cooperation, clear securities compliance and well-functioning secondary markets, the prospects for tokenized private equity may remain limited by the same structural issues from which it seeks to transform.
At Consensus Hong Kong 2026, one thing became clear: tokenization of private equity is no longer an experiment but an emerging asset with inherent challenges.