Robinhood Launches Controversial Tokenized Shares of OpenAI and SpaceX for EU Users

Robinhood Markets recently launched tokenized shares of high-profile private companies, including OpenAI and SpaceX, exclusively for European Union users. This move sparked controversy as OpenAI publicly distanced itself from the initiative, warning investors that these "OpenAI tokens" are not actual equity and were created without the company's approval or endorsement. The dispute underscores the growing tensions between crypto platforms aiming to democratize access to private markets and the companies whose equity is being tokenized without explicit partnership agreements.

On Monday, Robinhood CEO Vlad Tenev announced from Cannes that the trading platform would offer "stock tokens" – tokenized shares of private company equity for over 200 firms including OpenAI and SpaceX. This initiative was part of a broader product showcase that included perpetuals trading, staking services, and a new Layer 2 blockchain network built on Arbitrum. Robinhood offered 5 euros worth of OpenAI and SpaceX tokens to eligible EU users who signed up by July 7, leveraging the EU’s more relaxed investor protection regulations.

The company defended its approach by explaining that these tokens provide “indirect exposure to private markets” and are enabled by Robinhood’s ownership stake in a special purpose vehicle (SPV). According to Robinhood’s description, the stock tokens are derivatives tracked on blockchain that follow the prices of the underlying companies, giving retail investors exposure to otherwise inaccessible private markets. The platform emphasized that buyers are purchasing tokenized contracts that track price movements rather than actual stock ownership, with no traditional shareholder rights attached.

OpenAI’s response was swift and unequivocal, with the company posting on X that “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.” The statement emphasized that any transfer of OpenAI equity requires the company’s explicit approval, which was never granted for this tokenization scheme. OpenAI warned potential investors to “please be careful,” highlighting the unauthorized nature of the token offering and potential risks to retail investors.

The controversy immediately impacted Robinhood’s stock performance, with HOOD shares tumbling after OpenAI’s public denial of partnership. Despite the recent decline, the stock has shown remarkable year-to-date performance with gains of 152.52%, significantly outpacing the S&P 500’s 6.62% return. The company maintains a market capitalization of approximately $83.03 billion, though analyst price targets suggest mixed sentiment with estimates ranging from a low of $43.00 to a high of $110.00, averaging $73.98.