Robinhood’s stock token offerings are now facing regulatory scrutiny in the European Union, particularly after OpenAI warned investors that its tokens do not confer equity stakes. This warning triggered an inquiry from Lithuania’s central bank, which is assessing the legality of Robinhood’s tokens linked to OpenAI and SpaceX. Robinhood recently launched a layer-2 blockchain to facilitate its tokenized securities in the EU, planning to issue over 200 US stock and ETF tokens. However, concerns arise over private equity tokens for non-public companies like OpenAI and SpaceX. These tokens are considered derivatives providing indirect asset exposure. Despite varied market size estimates, the tokenization sector is valued at over $24 billion, with significant growth potential. Industry experts believe that tokenized stocks could represent a trillion-dollar opportunity, with investments in private credit and US Treasury debt driving the market’s expansion.
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