Robinhood CEO Reportedly Defends OpenAI, SpaceX Tokens – Says Equity Is Not ‘Entirely Relevant’

Robinhood Markets Inc.(HOOD) CEO Vlad Tenev defended the firm's tokenized stock offerings of OpenAI and SpaceX, responding to mounting criticism over their structure and investor representation.

During a Tuesday interview with CNBC, Tenev said it’s not “entirely relevant” that the digital tokens of these private companies aren’t technically equity. He emphasized that their value lies in providing fractional exposure to notable firms that aren’t publicly listed, such as OpenAI and SpaceX. 

Robinhood stock traded 2% lower in Tuesday’s mid-morning session following the interview. On Stocktwits, retail sentiment around Robinhood changed to ‘bullish’ from ‘extremely bullish’ territory.

OpenAI recently criticized Robinhood’s instrument, stating that any transfer of OpenAI equity requires the approval of the latter.

“These 'OpenAI tokens' are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it,” Sam Altman-led firm clarified on X.

Stocks in large and privately owned companies like OpenAI and SpaceX are typically not accessible to everyday investors, as these firms independently decide which parties can purchase stakes.

Tenev explained that the tokens are backed by Robinhood’s ownership in a special-purpose vehicle. Meanwhile, the Bank of Lithuania, Robinhood’s lead EU regulator, stated that it is reviewing the documentation to determine whether the structure meets investor protection standards.

Tenev described the tokens as an innovative way for individual investors to gain exposure to major private firms ahead of their public availability through conventional avenues. 

He pointed to OpenAI’s mixed organizational setup, which began as a nonprofit and later incorporated a for-profit arm, as compatible with this approach, adding that such structural details are not “entirely relevant” to the function of the tokens.

Tenev underscored Robinhood’s readiness to cooperate fully with European regulators, anticipating a detailed review of the program.

Robinhood has been ramping up its expansion of late. On June 30, the company unveiled plans to broaden its footprint in the European Union, rolling out a suite of new offerings.

Robinhood has launched more than 200 crypto-based representations of U.S. stocks and ETFs for investors across 30 European countries. 

Also See: Trump Media Files For ‘Truth Social Crypto Blue Chip ETF’ Hosting A Mix Of Digital Assets

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