OpenAI Denies Robinhood Partnership; Stocks Drop

OpenAI denied involvement in Robinhood’s recent stock token project on July 2, 2025, clarifying the non-equity nature of the tokens offered.

This matter significantly impacted Robinhood’s stock performance, highlighting potential reputational risks as the firm expands its crypto initiatives.

Robinhood’s Stock Falls 3.97% After OpenAI Denial

Robinhood recently offered tokenized shares of private companies like OpenAI and SpaceX to European users. CEO Vlad Tenev explained these tokens offer exposure but are not true equity. Meanwhile, OpenAI issued a strong denial regarding their involvement through social media.

The reaction to this clarification was immediate, with Robinhood’s stock (HOOD) dropping 3.97% to $94.09. Concerns over possible regulatory scrutiny further impacted public perception and market confidence. While Robinhood targets innovation in finance, skepticism surrounds the product’s actual value and potential for regulatory challenges.

Sam Altman, CEO, OpenAI, commented, “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it…please be careful.”

Experts Voice Uncertainty On Tokenization’s Regulatory Risks

Did you know? In 2020, FTX also attempted tokenizing equity, facing similar scrutiny over the implication of selling non-equity tokens.

Arbitrum, underpinned by the Arbitrum blockchain, supports Robinhood’s tokenized stock infrastructure. According to CoinMarketCap, it is priced at $0.34 with a market cap of $1.71 billion. Its recent performance saw a 12.48% rise over seven days, albeit a 2.93% drop in the past 24 hours.

Experts from Coincu suggest the innovative tokenization of shares by Robinhood could stimulate technological advancements, but regulatory implications remain uncertain, raising questions about cross-border digital asset offerings and supervision.