Robinhood CEO Vlad Tenev has defended the corporate’s controversial tokenized
inventory providing linked to OpenAI, saying the construction provides retail traders
invaluable publicity even when the tokens don’t characterize precise fairness, CNBC reported. The remarks come after OpenAI publicly distanced itself from the
product and EU regulators started reviewing its compliance.
OpenAI: No Approval Given for Fairness Illustration
Final week, OpenAI issued a warning on X, stating that
Robinhood’s tokens don’t characterize precise shares within the firm and that any
switch of OpenAI fairness requires prior approval, one thing the AI agency stated
it by no means granted.
Robinhood CEO downplays OpenAI issues on tokenized inventory construction https://t.co/6tWzgrtBXa
— CNBC Tech (@CNBCtech) July 8, 2025
Robinhood launched the product as a part of its
broader effort to permit EU-based customers entry to artificial publicity in
high-profile U.S. firms, together with personal corporations.
“Not Technically Fairness, however Nonetheless Publicity”
Talking on CNBC’s Squawk Field Europe on Tuesday, Tenev acknowledged that the tokens aren’t technically
fairness however argued that this distinction will not be crucial issue.
Nonetheless, he stated that what was vital was that retail prospects have a chance to get publicity to this asset, referring to OpenAI and different personal corporations. He added that OpenAI’s construction already
permits for oblique institutional publicity via devices that convert to
fairness beneath sure circumstances.
JUST IN: Robinhood CEO Vlad Tenev says tokenization is the most important innovation “up to now decade.” pic.twitter.com/fhiTiaCSw2
— Watcher.Guru (@WatcherGuru) July 8, 2025
Robinhood stated its OpenAI tokens are backed by a stake
in a particular objective car (SPV), which is designed to offer artificial
publicity somewhat than direct possession. This construction permits customers to
take part within the efficiency of hard-to-access personal corporations with out holding
conventional shares.
Lithuanian Regulator Seeks Clarification
The Financial institution of Lithuania, which oversees Robinhood’s EU
operations, stated it’s assessing the legality of the token product following
OpenAI’s public assertion.
Robinhood inventory tokens face scrutiny within the European Union after OpenAI warning https://t.co/Ml8joslub2
— CNBC (@CNBC) July 7, 2025
He added that data given to traders “have to be
offered in clear, honest, and non-misleading language.” In response, Tenev stated
the corporate will work with regulators and emphasised that Robinhood anticipated
questions. “Since it is a new factor, regulators are going to wish to take a look at
it,” he stated.
The scenario highlights the regulatory uncertainty
surrounding new monetary devices providing entry to non-public markets. Whereas
Robinhood markets the tokens as a approach to democratize publicity to development
firms, the dispute with OpenAI and the involvement of EU regulators recommend
an extended street forward in proving the mannequin’s legitimacy.
This text was written by Jared Kirui at www.financemagnates.com.
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