Robinhood CEO Unveils Push for Thousands of Tokenized Private Stocks

• The OpenAI and SpaceX tokenized equities, according to Tenev, are not currently tradable.
• Its tokenized stocks for private companies OpenAI and SpaceX have been the subject of debate, prompting the declaration.

The plan to list “thousands” of private firms as tokenized stocks has been laid out by Robinhood’s co-founder and CEO, Vladimir Tenev. Its tokenized stocks for private companies OpenAI and SpaceX have been the subject of debate, prompting the declaration. A public denunciation of the offering was even made by the creator of ChatGPT.

Private corporations do not participate in stock exchanges’ public trading. Investors such as workers, private equity companies, venture capitalists, and even angel investors are common sources of funding for these businesses. This means the general public can’t put money into these businesses.

Revolutionizing Tokenized Equities

By providing traders with access to the stocks over its own Ethereum layer-2 network, Robinhood’s tokenized stock offering aims to address this issue. However, it is currently only accessible in the EU.

Tenev said in an interview with Bloomberg:

“We’d like to have thousands of private companies on the platform, accessible to retail. And, actually, since our announcement, I’ve had a deluge of inquiries [from] private companies that actually want access to retail, to have their shares tokenized, to be part of this revolution.”

The OpenAI and SpaceX tokenized equities, according to Tenev, are not currently tradable. Since they were given out as part of a giveaway. However, early this month, the official OpenAI X account reacted negatively to it.

OpenAI wrote on X:

“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.”

Robinhood cannot issue tokenized stocks. Unless it owns the underlying asset outright or contracts with a “traditional financial business” to do so, according to Tenev. He went on to say that institutional investors often use a secondary market to buy and sell shares in private firms.

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