Robinhood’s New Tokenized Products

Robinhood has launched its new cryptocurrency-focused products in Europe, introducing tokenized versions of OpenAI and SpaceX stocks to users, despite strong opposition from OpenAI.

OpenAI stated, “These ‘OpenAI tokens’ are not OpenAI stock. We are not affiliated with Robinhood, were not involved in this process, and do not endorse this product,” in a statement on X (formerly Twitter).

The company clarified that any transfer of its shares requires its approval, warning, “Please be careful.”

Meanwhile, Robinhood debuted its new crypto and blockchain products in Cannes, France, featuring tokenized shares and staking services. Following this introduction, Robinhood shares rose above $100, achieving an all-time high.

A Robinhood spokesperson commented, “These tokens create new opportunities for individual investors by providing indirect access to private markets. The tokens are offered through shares we own through a special purpose company.”

In accordance with the looser investor regulations in the European Union, Robinhood is distributing €5 worth of OpenAI and SpaceX tokens to eligible users who sign up to buy equity tokens by July 7 through its crypto platform.

Crypto General Manager Johann Kerbrat stated, “Our goal is to expand access. With tokenization, we want everyone to be able to participate in this economy.”

This situation underscores the tension between crypto platforms’ efforts to democratize financial products and the companies’ desire for control over their assets. Due to US regulatory restrictions, these tokens aren’t available to US users.

> This is not investment advice.