Robinhood in Damage Control Mode as EU Regulators Probe OpenAI Tokenized Stock Backlash
Robinhood scrambles to soothe EU regulators after OpenAI's tokenized stocks spark compliance concerns. The trading platform faces mounting pressure as watchdogs question the legality of synthetic assets mimicking traditional equities.
When crypto bros meet Wall Street: The uncomfortable marriage of DeFi and regulated finance hits another snag. Robinhood's attempt to democratize investing now risks alienating the very institutions needed for mainstream adoption.
The EU's financial watchdogs aren't buying the 'innovation at all costs' narrative. With MiCA regulations looming, Robinhood's tokenization play could become a cautionary tale about moving fast and breaking things in heavily regulated markets.
Just what finance needed - another layer of abstraction between investors and actual assets. Because what could possibly go wrong when you tokenize a stock that's already a derivative of company ownership?
Tokens for OpenAI and SpaceX aren’t tradable yet
Tenev also clarified that tokens linked to unlisted firms such as OpenAI and SpaceX are currently non-tradable. Because these companies aren’t publicly quoted, Robinhood applies its proprietary valuation model, as outlined in the promotional legal notice.
According to Tenev, the company aims to expand tokenized equity trading to markets like the U.S. and U.K., subject to regulatory sign-off. He noted, “For tokenization in the US, we do believe that the SEC has the authority to make it happen without legislation.”
Blockchain-based tokenized securities, whose prices reflect those of the actual underlying shares, are gaining traction among global investors targeting U.S. equities. Though conventional exchange-listed stocks are accessible throughout most of Europe, advocates argue that tokenized options deliver identical features, such as dividends and stock splits, while enhancing transparency and efficiency with near-instant settlement.
Robinhood eyes opportunity in $24 billion tokenization market
Robinhood is also competing for a slice of the fast-growing tokenization market, which industry estimates value at more than $24 billion.
Some analysts question whether the market is truly that large, pointing to gaps in available data. Still, major institutions such as BlackRock and Franklin Templeton have made moves into tokenization.
A RedStone report last month found that tokenization is gaining ground in private credit markets by lowering entry hurdles, speeding up settlements and improving liquidity. The study identified private credit and U.S. Treasury debt as the biggest current drivers of token activity.
Ethereum is the leading network for tokenized real-world assets, even as newer blockchains offer faster and more scalable alternatives, the report found.
As of June 2025, the ethereum blockchain held about $7.5 billion in tokenized value across 335 products, making up roughly 59% of the entire market. “While Ethereum’s decentralized governance has historically limited its institutional outreach, the launch of Etherealize in January 2025 marked a strategic pivot,” said the report, pointing to the Ethereum Foundation’s push to bring more institutional investors on-chain.
Despite Ethereum’s dominance, the report highlighted solana as a “high-performance challenger” as it’s handling more tokenized Treasury trades. Solana hosted around $351 million in tokenized assets by mid-2025.
Aptos also saw notable growth, with $349 million in tokenized assets by June. The report observed that Aptos became the first non-Ethereum VIRTUAL Machine network used by BlackRock’s BUIDL fund.
Avalanche now holds $188 million in tokenized assets, including KKR’s blockchain fund, and the XRP Ledger, seen as a “regulated newcomer,” has $157 million in tokenized real-world assets.
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