Robinhood Launches Tokenized U.S. Stocks for European Clients, OpenAI Denies Involvement

Robinhood recently launched tokenized versions of U.S. stocks for European clients, including shares of Microsoft, Nvidia, and OpenAI. These tokenized assets are deployed on the Arbitrum blockchain, with minting costs averaging three cents per token. However, OpenAI has publicly denied any involvement or endorsement of this initiative. The company stated that these tokens are not OpenAI equity and that any transfer of OpenAI equity requires its explicit approval, which was never granted.

OpenAI's denial came in response to Robinhood's announcement, emphasizing that the company was not involved in the tokenization process and did not endorse it. This clarification was made to avoid any confusion among investors and to protect the integrity of OpenAI's equity. The company's statement was clear: "These ‘OpenAI tokens’ are not OpenAI equity. 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."

Elon Musk, the CEO of SpaceX and Tesla, responded to OpenAI's statement on social media, writing, "Your ‘equity’ is fake." This remark aligns with Musk's longstanding criticism of OpenAI's corporate structure. Musk did not address Robinhood's tokenized SpaceX shares in his comment, focusing solely on OpenAI's denial.

Robinhood CEO Vlad Tenev clarified the nature of the tokens, stating that stock token giveaways are not technically equity. He explained that these tokens provide retail investors exposure to private assets. Tenev noted that multiple private companies have expressed interest in joining tokenization efforts following the launch. This initiative by Robinhood aims to democratize access to private assets, allowing retail investors to participate in the growth of companies like OpenAI without holding actual equity.

Other exchanges offer comparable products, with Bybit and Kraken providing tokenized stocks through Backed Finance’s xStocks. Over 60 equities trade across these platforms and Solana-based decentralized exchanges. The Securities Industry and Financial Markets Association urged the SEC to reject such products lacking transparent approval processes. This highlights the regulatory challenges and concerns surrounding tokenized stocks, as the industry grapples with the need for clear guidelines and approval processes.

Robinhood's tokenized stocks remain accessible exclusively to European investors under current regulations. This geographic limitation is likely due to regulatory differences and the need to comply with local laws and guidelines. The initiative by Robinhood represents a significant step in the tokenization of real-world assets, offering investors new opportunities to engage with private companies and gain exposure to their growth potential. However, the lack of explicit approval from companies like OpenAI raises questions about the legitimacy and long-term viability of such tokenized assets.