Robinhood’s launch of private equity tokens, which provide exposure to tech giants like SpaceX and OpenAI, has attracted regulatory scrutiny in Europe. OpenAI expressed concern that these digital tokens do not confer actual equity ownership. The Bank of Lithuania, Robinhood’s primary regulator in the EU, is demanding further clarifications before concluding the legality of these tokens. As Robinhood expands into tokenized securities, announcing over 200 tokenized U.S. stocks and ETFs for European investors, the backlash emphasizes the balance between innovation and investor safeguards. The tokenization market is currently valued at over $24 billion, with key players like BlackRock and Franklin Templeton entering the space. However, legal uncertainties persist regarding whether tokenized equity instruments necessitate full securities registration. This regulatory inquiry may significantly influence Robinhood’s global tokenization strategy and the broader digital asset landscape.
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