Elon Musk and Open AI CEO Responded! Robinhood is Now Discussing Tokens with Europe!

Robinhood has started discussions with regulators in Europe regarding its tokenized stock initiative, with the focus of the discussions being the tokenization of OpenAI and SpaceX shares.

The US-based popular investment platform Robinhood has come under the close scrutiny of European regulators due to the blockchain-based tokenized stocks it has begun offering to European Union users. The company's plan to tokenize and distribute shares of SpaceX and OpenAI has particularly triggered a strong reaction from OpenAI. OpenAI has warned its users about this and emphasized that the transfer of its shares is only possible with the company's permission.

According to Bloomberg, Robinhood is currently responding to questions from European regulators such as the Bank of Lithuania. Regulators are concerned that tokenized shares could blur the lines between real stocks and derivative products. Robinhood CEO Vlad Tenev argued that these tokens are not real shares, but derivative products created solely to allow retail investors to invest in these companies.

Pilot Application on the Arbitrum Network

Despite all the discussions, Robinhood has so far created approximately 215 different tokenized stocks on the Arbitrum Layer 2 network and is actively maintaining test contracts. In fact, the company recently renamed one of the SpaceX tokens as "Demo 1" to indicate that the project is in its pilot phase.

The company also plans to establish its own Arbitrum-based Layer 2 blockchain network in the future and to offer perpetual futures trading to its users, in addition to tokenized stocks. How these developments will affect its relationships with regulators in Europe remains to be seen.