OpenAI challenges Robinhood over unauthorised tokenised shares

Robinhood has launched tokenized shares for private companies, drawing criticism from OpenAI as one of the affected firms.

At an event in Cannes on Monday, Robinhood co-founder and CEO Vlad Tenev showcased what he called “stock tokens” representing OpenAI and SpaceX. This development is part of Robinhood’s European expansion, which also includes more than 200 tokenized shares of publicly traded U.S. stocks available to EU customers.

Tenev explained that European users downloading the Robinhood app would be able to purchase tokenized shares in OpenAI and Elon Musk’s SpaceX—both privately held companies with no current plans to go public.

According to Robinhood’s website: “Robinhood Stock Tokens track the prices of publicly traded stocks and ETFs. These are blockchain-tracked derivatives offering exposure to the U.S. market. When you buy stock tokens, you're not purchasing actual shares, but tokenized contracts that mirror their prices on a blockchain.”

As a result, token holders do not receive traditional shareholder benefits like voting rights, though they do gain financial exposure to the companies.

OpenAI responds to Robinhood's tokenized shares initiative

The announcement was met with strong opposition from OpenAI. The prominent AI company, led by Sam Altman, firmly denied any association with Robinhood's offering.

“These ‘OpenAI tokens’ do not represent equity in OpenAI,” the company stated in a post on X. “We did not partner with Robinhood, were not consulted, and do not endorse this. Any transfer of OpenAI equity requires our approval—and we have not approved any. Please proceed with caution.”

Industry experts note that Robinhood’s approach seems tailored to offer price exposure without actual equity ownership, a structure likely chosen to navigate regulatory constraints.

This model resembles offerings from other fintech companies. For example, cryptocurrency exchange Kraken offers xStocks, which similarly do not grant direct ownership but are backed by underlying shares.

The launch of tokenized shares like OpenAI’s forms part of Robinhood’s strategy to grow in Europe while expanding its cryptocurrency and blockchain services. During the same event, the company introduced tokenized U.S. equities in Europe, as well as perpetual trading and staking options for American clients.

Implications for investing in private markets

If successful despite the controversy, Robinhood’s initiative could open up investing in high-demand private companies—typically restricted to institutional investors, venture capitalists, and accredited individuals—to a broader audience.

However, the backlash underscores the difficulties of innovating in tightly regulated financial markets, especially with private firms that closely control their equity distribution.

Financial analysts advise potential investors to clearly understand the difference between tokenized derivatives and direct equity ownership. While these products offer access to otherwise unreachable investment opportunities, their value and risks differ significantly from traditional shareholding.

Robinhood continues its European expansion, aiming to tap into growing interest among European traders in both U.S. equities and cryptocurrency. Whether the debate over tokenized shares—and the resistance from companies such as OpenAI—will support or hinder these efforts is yet to be seen.

See also: Growing interest in Europe’s AI Gigafactories initiative

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