Robinhood’s move to launch tokenized stocks tied to OpenAI and SpaceX has ignited a firestorm of criticism—from OpenAI itself to Elon Musk and decentralized finance advocates. At the center of the controversy is the question: Are these digital tokens real equity or just blockchain hype?
Robinhood Lists Tokenized OpenAI and SpaceX Stock—Without Their Approval
Earlier this week, Robinhood announced a giveaway of tokenized stock tied to the valuations of private companies OpenAI and SpaceX. The offering, launched on the Ethereum-based Arbitrum network, was promoted as a way to give European retail investors indirect exposure to private markets.
But OpenAI quickly distanced itself from the launch.
“We did not partner with Robinhood, were not involved in this, and do not endorse it,” the company wrote in a post on X (formerly Twitter). “Any transfer of OpenAI equity requires our approval—we did not approve any transfer.”
In response, Elon Musk—CEO of SpaceX and a former co-founder of OpenAI—bluntly replied: “Your ‘equity’ is fake.”
What Are Tokenized Stocks?
Tokenized stocks are blockchain-based representations of real-world equities. But unlike traditional shares, these tokens don’t carry voting rights or ownership of the underlying asset. According to Robinhood, the tokens “follow the price” of a company’s valuation, but do not grant actual ownership.
“When buying stock tokens, you are not buying the actual stocks,” Robinhood clarified. “You are buying tokenized contracts that track their price, recorded on a blockchain.”
The platform said the offering is powered by its stake in a special purpose vehicle (SPV) that holds exposure to private company shares.
OpenAI, Legal Experts Call the Product Misleading
The backlash goes beyond corporate denials. Legal experts are warning that Robinhood’s product could fall afoul of U.S. securities laws.
“This would face severe SEC scrutiny in the U.S. due to its fundamentally opaque SPV structure,” said Kurt Watkins, founder of Watkins Legal. “There’s no guarantee the tokens will track OpenAI’s price since they lack meaningful underlying rights and could face liquidity issues.”
Watkins added that OpenAI’s denial strengthens the legal risk: “The disavowal creates the kind of misleading financial product that securities laws are designed to prevent.”
U.S. customers are already barred from buying these stock tokens due to regulatory restrictions.
Investor Reactions and DeFi Community Critique
Some investors, however, argue that Robinhood’s approach still provides valuable exposure to high-profile companies—just in a different format.
“All Robinhood did was establish a token that tracks the valuation of OpenAI on private markets,” said investor Amit Kukreja on X. “You are not literally buying shares, but shares are just certificates; digital representations can matter too.”
Still, critics from the DeFi (decentralized finance) community see the structure as a step backward. Ren, from Electric Capital, described the token contracts as a “walled garden” that restricts transfers to approved wallets through KYC/AML checks.
“It’s unlikely these tokens can interact with DeFi,” Ren said, suggesting that Robinhood’s centralized control may simply outpace decentralized protocols not because of technical superiority, but due to better distribution.
A Growing Debate Around Blockchain and Equity
The controversy around Robinhood’s tokenized stocks underscores the regulatory and ethical challenges of bringing real-world assets onto the blockchain. While tokenized equities could revolutionize how we invest, critics argue that poorly structured products risk misleading retail users and undermining trust in digital finance.
As legal, regulatory, and ethical questions mount, one thing is clear: Robinhood’s latest crypto experiment has opened a new chapter in the debate over the tokenization of traditional assets.
