#Robinhood in Talks with European Regulators Over Tokenized Stocks
Robinhood is currently engaged in discussions with European regulators regarding its newly launched Stock Tokens product, according to The Block.
Launched on June 30th, Stock Tokens allow users to invest in company shares, including those of private companies like OpenAI and SpaceX, via the blockchain.
Regulatory Scrutiny and Concerns
OpenAI has publicly distanced itself from these tokens, stating, "This is not our stock. We have not approved any transfer." The Central Bank of Lithuania, Robinhood's primary regulator in the EU, has initiated a review, demanding explanations about the tokens' structure and assessing whether they might mislead investors.
Vlad Tenev, Robinhood's CEO, has clarified that these tokens are derivatives designed to provide "retail access to the private market," emphasizing that they are not actual shares. The tokens are issued on the Arbitrum network, with access currently limited to whitelisted wallets.
Robinhood has already issued 215 tokens, including "Demo 1" for SpaceX, indicating the product is still in a testing phase.
Some legal experts are cautioning that a similar model in the US could face blocking by the SEC due to an opaque Special Purpose Vehicle (SPV) structure and a lack of investor rights.
