Robinhood’s attempt to tokenize equity in high-profile firms like OpenAI and SpaceX has come under scrutiny in the European Union, following a sharp warning from OpenAI and a regulatory inquiry from Lithuania’s central bank. The move now places the brokerage’s new product under legal and reputational pressure less than a week after launch.
According to CNBC, the Bank of Lithuania confirmed on Monday that it had contacted Robinhood seeking “clarifications” over the structure of its newly launched OpenAI and SpaceX stock tokens.
OpenAI Rejects Links to Robinhood’s Token Product
Robinhood launched the blockchain-based stock token product on June 30, allowing EU users to invest in shares of both public and private companies. However, shortly after the announcement, OpenAI issued a statement distancing itself from the product and warning that the tokens do not represent equity in the company.
In response to OpenAI’s remarks, Robinhood stated that its tokenized offering provides retail investors with indirect exposure to private markets and is backed by the company’s ownership stake through a special purpose vehicle.
Robinhood holds both a brokerage and crypto asset service provider license in the EU, granted by the Bank of Lithuania, making the country its lead regulatory authority in the bloc.
The case could serve as an early test of how European regulators respond to the growing trend of asset tokenization, particularly when tied to private companies that have not consented to the use of their names or equity in such products.
Regulatory Oversight Tightens as Tokenization Expands
As scrutiny builds, the future of Robinhood’s stock token strategy and broader investor trust in tokenized shares could hinge on how the company navigates its obligations to regulators and the companies it claims to offer exposure.
Last week, Robinhood announced its plans to offer tokenized stocks in Europe. The commission-free broker joined two mega crypto exchanges, Kraken, Gemini and Bybit, who also announced their entry into the space around the same time.
Related: Tokenized Stocks Mania: Two Mega Crypto Exchanges Enter the Space Nearly 2 Hours Apart
