Robinhood (NASDAQ: HOOD) officially launched its tokenized equities offering in the European Union (EU) on June 30, enabling users to trade more than 200 U.S. stocks and exchange-traded funds (ETFs) 24/5 with zero commissions.
The new system features tokenized versions of real-world assets (RWAs), fully backed and settled on-chain, while offering transparent audit trails and promising to blend blockchain and traditional finance (TradFi).
A significant milestone for blockchain finance, the rollout led to a 13% surge in Robinhood’s share price.
Tokenized equities
As blockchain adoption expands, more businesses are turning to tokenized shares as a new way to raise capital.
Namely, instead of issuing traditional stock certificates, companies can now offer equity in the form of digital assets, such as crypto, to expedite their operations and potentially expand their global reach.
Robinhood’s tokenized trading platform runs on the Ethereum (ETH) compatible Robinhood Chain, developed using Arbitrum’s (ARB) Orbit framework, and now offers tokenized exposure to private firms like SpaceX and OpenAI.
These promotional tokens don’t confer direct ownership but are structured as derivatives, mimicking the value of shares based on secondary market pricing. As Andrei Grachev, Managing Partner of DWF Labs, puts it:
“The technology is live. Robinhood’s EU tokenized equity launch includes 200+ U.S. stocks and ETFs, trading 24/5 with zero commissions, triggering a 13 % stock price gain. Globally, we also see Kraken and Coinbase rolling out similar programs. These tokens are fully backed, settle on‑chain with audit trails, and resolve real‑world inefficiencies but frameworks must evolve to recognize infrastructure upgrades over regulatory evasion.” — Andrei Grachev, Managing Partner of DWF Labs
Robinhood regulatory scrutiny
Robinhood’s rapid expansion into tokenized assets quickly drew regulatory attention.
For instance, the Bank of Lithuania, which regulates the platform’s EU operations, requested additional details about the private company tokens.
In response, Robinhood remained adamant that the offerings comply with the EU’s Markets in Crypto-Assets Regulation (MiCA) and Markets in Financial Instruments Directive (MiFID) frameworks, which treat such tokens as derivative instruments rather than direct equity holdings.
In the meantime, OpenAI publicly distanced itself from the offering, cautioning users against trading the tokens as they do not represent OpenAI equity.
Robinhood Chief Executive Officer (CEO) Vlad Tewnev responded to the controversy by clarifying that the product is “enabled by Robinhood’s ownership stake in a special purpose vehicle,” not by direct equity ownership.
Tenev further explained that OpenAI’s hybrid organizational model (originally a non-profit, now encompassing a capped-profit subsidiary) permits institutional investors to gain exposure through complex financial instruments.
These may include conversion rights or other derivatives, Tenev argued, which Robinhood mirrors in its tokenized product for retail access.
Featured image via Shutterstock
