Bold Robinhood Tokenization Plan Stalled Amid OpenAI Backlash and EU Pressure
European officials are talking to Robinhood Markets about its most recent tokenization initiative. This comes after Sam Altman’s AI company publicly criticized its proposal to provide blockchain-based equity tokens of OpenAI and SpaceX to EU customers.
The Bank of Lithuania and other organizations are asking brokerage questions concerning the structure of the tokens. According to Bloomberg, regulators are worried that the tokens would make it harder to distinguish between futures and actual shares. In addition, CNBC reported that the central bank of Lithuania acknowledged that it had asked Robinhood for information.
Robinhood Faces OpenAI Backlash Over European Token Promotion
On June 30, Robinhood announced the promotion, which will grant eligible European users access to more than 200 U.S. stocks later this year in addition to a small package of OpenAI and SpaceX tokens. OpenAI issued a cautionary notice to users and openly disassociated itself from the offer.
Any transfer of OpenAI equity requires our approval.
Browse PostsOpenAI
Vlad Tenev, CEO of Robinhood, retorted that the coins are derivatives, not equity, intended to provide retail exposure.
Robinhood Distributes 215+ Stock Tokens on Arbitrum Despite Regulatory Heat
On-chain data indicates that Robinhood has distributed over 215 stock tokens on the Arbitrum Layer 2 network and is still testing contracts in spite of the scrutiny. Recently, one SpaceX token was dubbed “Demo 1,” signifying that the pilot phase is still in progress. In addition, Robinhood plans to introduce its own Layer 2 blockchain based on Arbitrum and provide perpetual futures trading.
For more up-to-date crypto news, you can follow Crypto Data Space.
