Robinhood CEO Addresses Elon Musk’s Criticism on Tokenized Equity
Robinhood launched tokenized stocks for private firms like OpenAI and SpaceX on June 30, generating controversy. CEO Vlad Tenev defended the initiative against Elon Musk's criticism, emphasizing that these assets provide retail investors access to private companies.
OpenAI Disavows Tokenized Stocks
- OpenAI clarified it does not endorse Robinhood's tokenized versions of its equity.
- The firm stated these tokens do not represent actual equity and require their approval for any transfer.
These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it...
— OpenAI Newsroom (@OpenAINewsroom) July 2, 2025
Stock Performance and Future Plans
- Despite the backlash, HOOD stock rose by 7% to $97.8 on July 2.
- In 2025, HOOD stock has increased by 150%, and 328% over the past year.
- Tokenized stocks are currently on the Arbitrum blockchain; a new Layer 2 blockchain will be introduced for enhanced trading features.
...the tokens effectively give retail investors exposure to these private assets...
— Vlad Tenev (@vladtenev) July 2, 2025