Robinhood’s stock token product is under regulatory scrutiny in the EU after Openai warned investors that the digital broker’s so-called OpenAI token does not represent any equity stake in the company.
Openai’s warning prompted the Central Bank of Lithuania, the main regulator in Robinhood in the region.
Bank of Lithuania is “waiting for clarification” of stocks related to Robinhood’s stock token products and SpaceX’s stock token products, CNBC Lithuania spokesman Gidrius Šniukas, reported on Monday.
“We can only evaluate the legality and compliance of these specific tools after receiving and evaluating this information.”
Robinhood launched its Layer 2 blockchain on June 30 to support its tagged securities products in the EU, a trend that peaked on June 30. this Brokerage says it plans to issue More than 200 U.S. stock and exchange-traded funds (ETF) tokens are provided to European investors.
However, the focus of this rebound is Robinhood’s so-called private equity tokens, which are mainly Openai and SpaceX for companies that are not traded publicly. As Cointelegraph pointed outOpenai has clarified that these tokens do not represent interests in the company.
As Galaxy Research notes, these equity tokens are essentially “derivatives that provide indirect exposure to underlying assets.”
Related: Tagged equity in grey areas still regulated – Lawyer
Have a growing token pie
Industry estimates that like other brokerage firms, the Robidin people are fighting for a share of the rapidly expanding tokenized market, worth more than $24 billion.
Although some insiders, for example Chris Yin, CEO of Plumeriaquestioning the market size due to data tracking challenges, major institutions Black Stone and Franklin Templeton Already entered the space.
recent Redstone’s report It is noted that tokenization is gaining attention in the private credit market by reducing barriers to entry and improving settlement time and liquidity. The report found that private credit and U.S. Treasury debt are currently the biggest drivers of tokenization.
At this recent meeting in New York, industry leaders believed Symbol stocks Alone may represent a trillion-dollar opportunity.
