Robinhood CEO defends tokenized stock structure despite concerns from OpenAI

Robinhood CEO Vlad Tenev defends the trading platform’s stock tokens for OpenAI and SpaceX, despite concerns from OpenAI about the product not representing equity. Tenev states the tokens are enabled by Robinhood’s ownership stake in a special purpose vehicle, allowing retail customers to gain exposure to private companies.

OpenAI, initially a non-profit, now includes a for-profit entity owned by the non-profit. Tenev emphasizes that while the stock tokens may not technically be equity instruments, the opportunity for retail customers to access assets like OpenAI is crucial due to AI’s disruptive nature.

The Bank of Lithuania, overseeing Robinhood in the EU, is seeking clarification on the legality and compliance of the stock tokens following OpenAI’s statement. Tenev confirms Robinhood is willing to address regulators’ questions, believing their program will withstand scrutiny as an innovative player in the industry.

Read more at CNBC: Robinhood CEO downplays OpenAI concerns on tokenized stock structure