Robinhood CEO confirms regulatory talks over tokenized equities

robot
Abstract generation in progress

Investing.com -- Robinhood Markets Inc (NASDAQ:HOOD). is in discussions with regulators regarding its tokenized equities offering in Europe, CEO Vlad Tenev said after the launch drew criticism from companies like OpenAI.

The California-based company recently announced that retail investors using its app in the European Union could trade tokens representing shares of US equities on blockchain. The launch included a token giveaway for private companies such as OpenAI, which later warned traders that these tokens do not represent actual equity in the company.

Invest in Gold

American Hartford Gold: #1 Precious Metals Dealer in the Nation

Learn More ### Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase

Learn More ### Thor Metals Group: Best Overall Gold IRA

Learn More Powered by Money.com - Yahoo may earn commission from the links above. "They have some questions," Tenev told Bloomberg Television, referring to the Bank of Lithuania, which oversees Robinhood’s EU operations. "They want to make sure that everything is proper because it’s a new innovative offering. We’re confident. We think that these are not only important, but they’ll withstand the highest form of scrutiny."

On Monday, the Bank of Lithuania told CNBC it had requested clarification from Robinhood about the token structure.

Tenev noted that tokens representing private stocks like OpenAI and SpaceX are not yet available for trading. For these non-publicly traded companies, Robinhood values the businesses using its own internal methodology, according to a legal notice about the promotion.

The CEO expressed hope to expand tokenized equities to other markets including the US and UK, pending regulatory approval.

"For tokenization in the US, we do believe that the SEC has the authority to make it happen without legislation," Tenev added. "The US shouldn’t be far behind."

Related articles

Robinhood CEO confirms regulatory talks over tokenized equities

Meta lures Apple’s top AI executive in latest talent coup, Bloomberg reports

HDFC, Reliance and Airtel seen powering earnings rebound for Nifty in June qtr

View Comments

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)