OpenAI's public split raises regulatory concerns, Lithuanian central bank demands explanation
Robinhood's equity tokenization service launched in the EU is facing regulatory scrutiny, triggered by OpenAI's public warning to investors that the so-called OpenAI tokens issued by the brokerage do not represent any equity of the company. OpenAI's statement has led to an investigation by the Lithuanian central bank, which is the main regulatory body for Robinhood in Europe.
Lithuanian central bank spokesperson Giedrius Šniukas told (CNBC) that the bank is 'waiting for clarification' regarding Robinhood's issuance of equity tokens related to OpenAI and SpaceX.
The core of the controversy lies in the so-called private equity tokens issued by Robinhood for non-public trading companies. OpenAI has clearly stated on the X platform: 'We have not collaborated with Robinhood, nor have we participated in this matter, and we do not endorse this service. Any transfer of OpenAI equity requires our approval, and we have not approved any transfers.'
Further Reading
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Robinhood is actively expanding its tokenization business, with strong inquiries from private enterprises
Robinhood launched its Layer 2 blockchain on June 30 to support its tokenization securities services in the EU, with plans to issue over 200 types of US stock and exchange-traded fund (ETF) tokens to European investors. CEO Vlad Tenev stated in an interview with (Bloomberg) that since announcing this service, the company has received a large number of inquiries from private enterprises.
Source: (Bloomberg) Robinhood CEO Vlad Tenev stated that since announcing this service, the company has received a large number of inquiries from private enterprises
'Since we announced it, I have received a lot of inquiries, private companies actually want to reach retail investors, tokenize their shares, and become part of this revolution,' Tenev said. He stated that Robinhood's long-term goal is to include thousands of private companies on the platform.
Currently, the platform only provides services in the EU, and as part of a promotional campaign, the platform also offers non-tradable tokens representing private companies like OpenAI and SpaceX. According to on-chain data, Robinhood has issued approximately 215 types of equity tokens on the Arbitrum Layer 2 network.
Compliance challenges under regulatory frameworks, US market progress is under scrutiny
These tokens are technically classified as derivative financial products under the EU's Markets in Crypto-Assets Regulation (MiCA) and the Markets in Financial Instruments Directive (MiFID). Galaxy Research points out that these equity tokens are essentially 'derivative financial products that provide indirect exposure to the underlying assets.'
Tenev stated that the company welcomes regulatory scrutiny: 'They want to ensure everything is appropriate, as this is a new innovative product. We are very confident; we believe these are not only important but can withstand the highest forms of scrutiny.' He confirmed that the company is in discussions with regulators in the US and the UK, but the platform has not yet launched in those markets.
Regarding the US market, Tenev stated that the SEC can approve tokenization without the need for new legislation. 'The US should not fall too far behind. This opportunity is too great to be ignored,' he said.
According to industry estimates, the tokenization market is valued at over $24 billion, with major institutions like BlackRock and Franklin Templeton entering the industry. Galaxy Digital noted that Robinhood's tokenization initiative removes assets from traditional market channels and brings them on-chain, directly challenging the centralized liquidity and activity advantages of major traditional financial exchanges like the New York Stock Exchange.
'Selling OpenAI tokens causes trouble! European regulators focus on Robinhood, equity on-chain may cross the red line' This article was first published in 'Crypto City'
