Robinhood Faces EU Scrutiny Over Tokenized Stocks Tied to OpenAI

Robinhood Markets is currently under scrutiny by European Union regulators for its new tokenized stock offerings, which are tied to private companies such as OpenAI. Launched on June 30, 2025, this initiative aims to provide retail investors in the EU with digital exposure to major U.S. companies. However, the product has sparked controversy due to OpenAI's public disavowal of any association with the tokens, stating that they do not represent actual equity in the company. This has raised concerns about potential investor confusion and the legal structure of the tokens.

OpenAI has explicitly distanced itself from Robinhood's tokenized stock product, clarifying that the tokens do not equate to actual shares in the company. In a statement posted on X, OpenAI emphasized that transferring equity in the company requires prior approval, which has not been granted to Robinhood. This clarification has added to the regulatory scrutiny, as the Bank of Lithuania, the authority overseeing Robinhood’s operations in the EU, has begun reviewing the tokenized stock offering. Regulators are now questioning the product’s legal structure and its compliance with EU financial regulations.

Robinhood CEO Vlad Tenev has defended the company’s product, arguing that the value of the tokens lies in the exposure they provide to private companies, rather than direct equity ownership. Speaking on CNBC’s “Squawk Box Europe,” Tenev acknowledged that the tokens are not technically equity but highlighted that they enable retail investors to participate in the performance of private companies like OpenAI, even without direct ownership. He emphasized that the tokens provide synthetic exposure through a special purpose vehicle (SPV), which is designed to track the valuation of the underlying companies.

The core of the dispute revolves around whether Robinhood’s tokenized stocks could mislead investors into thinking they own real equity in companies like OpenAI. The Bank of Lithuania has stated that information given to investors “must be provided in clear, fair, and non-misleading language.” In response, Tenev said the company will work with regulators and emphasized that Robinhood anticipated questions regarding the new product. The situation underscores the regulatory uncertainty surrounding new financial instruments offering access to private markets, highlighting the challenges Robinhood faces in proving the legitimacy of its tokenized stock model.