Robinhood CEO Vlad Tenev said Tuesday that it’s not “entirely relevant” that the trading platform’s tokenized shares of OpenAI and SpaceX aren’t technically equity in those companies.
This statement comes after OpenAI expressed concerns about Robinhood’s stock tokens, which are designed to give European Union users exposure to U.S. stocks, including private companies. OpenAI noted on X last week that Robinhood’s tokens do not represent actual equity, and any transfer of OpenAI shares requires the company’s approval, which has not been granted.
How Robinhood’s Tokenized Shares Work
Tenev explained to CNBC’s “Squawk Box Europe” that the OpenAI stock tokens are “enabled by Robinhood’s ownership stake in a special purpose vehicle.”
He acknowledged that “these are not technically equity,” but emphasized that OpenAI’s complex structure allows institutional investors to gain exposure through “various instruments, like equity upon the event of a conversion to a for-profit at a later date.”
OpenAI was originally founded as a non-profit but later included a for-profit arm owned by the non-profit.
“What’s important is that retail customers have an opportunity to get exposure to this asset,” Tenev said, adding that private companies like OpenAI are especially attractive due to the disruptive nature of AI.
Regulatory Scrutiny in the European Union
The Bank of Lithuania, Robinhood’s lead EU regulator, said it is “awaiting clarifications” on the tokenized stock structure following OpenAI’s statements.
“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments,” a spokesperson said. The bank stressed that investor information must be “clear, fair, and non-misleading.”
Tenev responded that Robinhood is “happy to continue to answer questions from our regulators” and expects scrutiny as an innovative player in the space.
“Since this is a new thing, regulators are going to want to look at it, and we’ve built this program in a way that we believe will withstand scrutiny,” he said.
Author’s Opinion
Offering tokenized stocks for private companies is an exciting step toward democratizing access to unique investment opportunities. However, the complexity and novelty of such products demand clear communication and robust regulatory oversight to protect investors. While Robinhood is pushing the envelope, transparency and education must keep pace to ensure retail investors truly understand what they’re buying.
