Robinhood Defends Stock Tokens Amid Regulatory Scrutiny in EU

Robinhood CEO Vlad Tenev has publicly defended the platform's blockchain-based stock tokens following increased scrutiny from European regulators. The Central Bank of Lithuania is currently examining the structure and marketing of these innovative investment products, which aim to provide retail investors with access to shares of private companies like SpaceX and OpenAI.

Tenev expressed confidence in the tokens' regulatory compliance during a Bloomberg interview, stating the firm welcomes discussions with authorities. "We believe these products represent the most significant capital markets innovation since the central limit order book," the CEO tweeted, underscoring his bullish stance on tokenization.

The controversy intensified when OpenAI denied authorizing Robinhood to offer equity exposure through the tokens. Despite this setback, Tenev reports growing institutional interest in the tokenized equity model, suggesting broader adoption may be forthcoming.