Key Takeaways
- Robinhood recently launched “private stock tokens” representing OpenAI and SpaceX.
- However, OpenAI has distanced itself from the offering.
- Defending the launch, Robinhood CEO Vladimir Tenev said tokenized private equity can broaden access to the asset class.
On June 30, Robinhood launched a new tokenized equities platform in the EU, following similar announcements from Kraken and Coinbase.
Somewhat controversially, the firm didn’t limit itself to public companies. Robinhood also issued tokens representing OpenAI and SpaceX. This prompted OpenAI to distance itself from the platform, which CEO Vladimir Tenev was forced to defend.
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OpenAI Pushes Back Against Robinhood Equity Tokens
For the 200+ tokenized stocks listed on Robinhood’s new platform, the process for issuing assets is pretty well established: Robinhood buys shares on the stock market, issues Arbitrum tokens that represent those shares on a one-for-one basis, and lists them on its trading platform.
However, the precise mechanics of its private equity offering are less clear.
Robinhood has said it holds OpenAI and SpaceX equity through its stake in a Special Purpose Vehicle.
However, neither company has ever acknowledged receiving investment from Robinhood, and it isn’t immediately clear what kind of exposure the SPV has to OpenAI or SpaceX.
In an X post on July 2, OpenAI cautioned that “these ‘OpenAI tokens’ are not OpenAI equity.”
“We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer,” the company stated.
Robinhood CEO Defends Private Stock Tokens
After OpenAI distanced itself from Robinhood’s latest tokenization offering, CEO Vladimir Tenev appeared on Bloomberg TV to discuss the initiative.
Referring to the tokenized representations of OpenAI and SpaceX equity as “private stock tokens,” Tenev said Robinhood is currently only “testing the waters,” noting that the tokens are not yet tradable.
Nevertheless, he believes the concept can potentially solve “one of the biggest inequities in capital markets, which is the fact that you have these massive companies which are staying private longer.”
Based on its mammoth $40 billion funding round led by SoftBank, OpenAI’s valuation has soared to $300 billion. Meanwhile, SpaceX was valued at a massive $350 billion when it last raised capital in 2024.
Both companies exist at the cutting edge of their respective fields, and many analysts expect their market value to continue rising. “But retail investors can’t get exposure,” Tenev lamented. “We’re working to solve this.”
Tokenizing Private Equity
Although the IPO market has somewhat recovered from a slump in recent years, private equity exits remain suppressed, as high interest rates and buyer caution force firms to hold on to their investments for longer.
Against this backdrop, tokenization could inject much-needed liquidity into the private equity market, offering investors and fund managers strategic value. On the other hand, tokenized private equity can grant retail investors access to an asset class that has traditionally been out of reach for them.
Accordingly, Robinhood isn’t the only company trying to promote the concept.
Among asset managers, Hamilton Lane has led the charge, partnering with Republic to offer tokenized versions of its private equity funds.
A parallel movement can be seen in the private credit market, which has emerged as the largest category of tokenized real-world assets.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
