Robinhood recently unveiled plans to distribute “tokenized” stakes in private firms OpenAI and SpaceX to eligible European users, despite OpenAI’s disavowal of the offering. Tokenized stocks, traded on blockchain, provide indirect ownership of private companies, giving retail investors potential access to significant early investment gains. Robinhood CEO Vlad Tenev argues this innovation democratizes investment opportunities, enabling users to hold stocks directly in digital wallets and trade flexibly, even amid brokerages’ technical issues.
In the U.S., private market investments are limited to accredited investors due to federal regulations, restricting access to smaller investors. Tenev advocates for opening private markets to retail investors, highlighting the potential for enhanced participation in leading startups before their public listings. Discussions are ongoing between Robinhood and the SEC about tokenization, which could expand investment options for everyday consumers across the U.S., provided regulatory frameworks are established.
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