Bernstein: Improvement in the Regulatory Environment Will Drive the Arrival of the 'Equity Tokenization Wave'

July 7th. Even in the face of opposition from OpenAI, Robinhood still launched its tokenized stock product during a high-profile event at last week's Cannes. The controversial OpenAI private equity token was categorized as a derivative. Bernstein analysts pointed out that the company is wagering on SEC policy support and the passage of the "CLARITY Act" to open up the tokenized asset market. Bernstein analysts hold the view that despite the attention generated by the Robinhood-OpenAI dispute, an improvement in the regulatory environment will lead to the arrival of the "equity tokenization wave." While privately held companies like OpenAI and SpaceX already have liquidity in the private market, there remains a strong demand to tokenize illiquid private assets. "Robinhood has successfully drawn market attention to the concept of tokenization through this launch. The company will continue to refine its products with the aim of establishing a stock trading platform for both public and private companies globally and in the U.S. market (upon obtaining regulatory approval)."