Robinhood engages with regulators over tokenized equities: Bloomberg

Robinhood Markets is discussing its latest tokenization effort with European regulators after its plan to give EU users blockchain-based “stock tokens” of OpenAI and SpaceX received public backlash from Sam Altman’s AI firm.

The brokerage is fielding questions from entities, such as the Bank of Lithuania, about how the tokens are structured and whether they blur the line between real equity and derivatives, Bloomberg reported. Lithuania’s central bank confirmed that it had requested details from Robinhood, according to CNBC.

The Block reached out to Robinhood for comment.

Robinhood launched the offer on June 30, promising eligible European users a small parcel of OpenAI and SpaceX tokens as part of the promotion, along with access to more than 200 U.S. stocks later this year. OpenAI publicly distanced itself from the giveaway, warning users that “any transfer of OpenAI equity requires our approval” and advising investors to “be careful.” Robinhood CEO Vlad Tenev replied that the tokens are derivatives designed to give retail exposure, not equity.

Despite the scrutiny, onchain data shows Robinhood has issued about 215 stock tokens on the Arbitrum Layer 2 network and continues to test contracts. One SpaceX token was recently renamed “Demo 1,” indicating the pilot phase is ongoing. Robinhood also intends to offer perpetual-futures trading and to launch its own Arbitrum-based Layer 2 blockchain.