Robinhood Engages with European Regulators on Tokenized Stocks

On July 8th, as per Bloomberg, Vlad Tenev, the CEO of Robinhood Markets Inc., stated that the company is in communication with regulators regarding its tokenized stock product launched in Europe. This product has previously drawn criticism from multiple companies, including OpenAI. The California-based company announced last week that retail investors in the European Union can now trade blockchain tokens representing U.S. stocks through its app. This launch also encompassed tokens for privately held companies like OpenAI. However, Sam Altman-led OpenAI later reminded traders that these "tokens" do not represent equity in the company. The brokerage is facing inquiries from regulators, such as the Bank of Lithuania, regarding the structure of these tokens and whether they blur the line between actual equity and derivatives. The Bank of Lithuania has confirmed having reached out to Robinhood for more details.