OpenAI and Robinhood Shake Markets with Tokenized Stock Confusion
OpenAI made headlines on July 2nd when it was revealed that digital tokens trading under its name on Robinhood’s new blockchain platform do not actually represent OpenAI equity and were listed without the company’s consent.
In a statement released on X, the artificial intelligence developer clarified: “These ‘OpenAI tokens’ are not OpenAI equity. 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.”
Investors were urged to exercise caution, as any movement of equity in the private firm must be approved by its board.
The confusion stemmed from a tokenized-stock pilot demonstrated by Robinhood CEO Vlad Tenev at an event in Cannes, France on June 30th. The platform, built with Arbitrum technology, will allow eligible European users to trade over 200 US equities and exchange-traded funds 24/7 with no commissions or spreads. These shares will be converted into on-chain tokens for transfer and settlement.
Following the presentation, Robinhood’s class-A shares surged by 11% to a record $92, continuing a month-long rally of approximately 34%. Despite the company being privately held, market speculation began treating the demo asset as de facto OpenAI equity.
Robinhood’s initiative is part of a larger movement to transition traditional equities onto public blockchains. Dinari recently obtained broker-dealer registration for a subsidiary, enabling the distribution of its tokenized “dShares” to US brokerages after completing SEC onboarding. The firm currently issues blockchain-recorded shares to non-US users on Coinbase’s Base network and plans to settle future trades on a public chain while routing orders through registered market centers.
Kraken has also launched a 24/7 platform for tokenized US stocks, and Coinbase is seeking SEC approval to introduce a similar service. Advocates argue that putting equities on-chain reduces clearing fees, shortens settlement times to near real-time, and facilitates continuous trading.
The integration of tokenized stocks into the market is a significant development that could revolutionize the way equities are traded and settled in the future. Investors and traders should stay informed and cautious as this innovative technology continues to evolve.