Robinhood Markets Inc. Chief Executive Officer Vlad Tenev said the firm is in talks with regulators over its offering of tokenized equities in Europe, after the launch drew rebuke from companies including OpenAI.
The Menlo Park, California-based firm announced last week that retail investors using its app in the European Union could start trading tokens that represent shares of US equities on blockchain. The launch included a giveaway of tokens for closely held companies like OpenAI. The firm led by Sam Altman later cautioned traders that the “tokens” are not equity in the company.
“They have some questions,” said Tenev in an interview with Bloomberg Television, referring to the Bank of Lithuania, which oversees Robinhood’s activities in the EU. “They want to make sure that everything is proper because it’s a new innovative offering. We’re confident. We think that these are not only important, but they’ll withstand the highest form of scrutiny.”
The Bank of Lithuania said in a statement on Tuesday that it had contacted Robinhood regarding its private stock tokens, which also included Elon Musk’s SpaceX, and the information that the trading app had provided to customers. “We are currently expecting explanations and will evaluate them,” a spokesperson for the central bank said. CNBC first reported the regulator’s outreach.
