Street Calls of the Week
Robinhood Markets (NASDAQ:HOOD) sparked controversy this week when it launched tokenized shares of high-profile private companies, including OpenAI and SpaceX, for European Union users, only to face swift condemnation from OpenAI itself.
The AI company publicly distanced itself from the trading platform’s latest crypto initiative, warning investors that these “OpenAI tokens” are not actual equity and were created without the company’s approval or endorsement.
The dispute highlights growing tensions between crypto platforms seeking to democratize access to private markets and the companies whose equity is being tokenized without explicit partnership agreements.
Robinhood’s Ambitious EU Tokenization Play Falls Flat as OpenAI Distances from Exchange
On Monday, Robinhood CEO Vlad Tenev announced from Cannes that the trading platform would offer “stock tokens” – tokenized shares of private company equity for over 200 firms including OpenAI and SpaceX – exclusively to European Union users.
The initiative was positioned as part of a broader product showcase that included perpetuals trading, staking services, and a new Layer 2 blockchain network built on Arbitrum. Robinhood offered 5 euros worth of OpenAI and SpaceX tokens to eligible EU users who signed up by July 7, leveraging the EU’s more relaxed investor protection regulations.
The company defended its approach by explaining that these tokens provide “indirect exposure to private markets” and are enabled by Robinhood’s ownership stake in a special purpose vehicle (SPV).
According to Robinhood’s description, the stock tokens are derivatives tracked on blockchain that follow the prices of the underlying companies, giving retail investors exposure to otherwise inaccessible private markets. The platform emphasized that buyers are purchasing tokenized contracts that track price movements rather than actual stock ownership, with no traditional shareholder rights attached.
OpenAI’s Rebuke and Market Impact
OpenAI’s response was swift and unequivocal, with the company posting on X that “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.”
The statement emphasized that any transfer of OpenAI equity requires the company’s explicit approval, which was never granted for this tokenization scheme. OpenAI warned potential investors to “please be careful,” highlighting the unauthorized nature of the token offering and potential risks to retail investors.
The controversy immediately impacted Robinhood’s stock performance, with HOOD shares tumbling after OpenAI’s public denial of partnership. As of July 3rd, 2025, Robinhood stock was trading at $94.09, down 3.97% ($3.89) from the previous close of $97.98.
Despite the recent decline, the stock has shown remarkable year-to-date performance with gains of 152.52%, significantly outpacing the S&P 500’s 6.62% return.
The company maintains a market capitalization of approximately $83.03 billion, though analyst price targets suggest mixed sentiment with estimates ranging from a low of $43.00 to a high of $110.00, averaging $73.98.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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