Robinhood is now facing heat from European regulators after OpenAI said it wants nothing to do with the company’s new stock tokens.
On Monday, Lithuania’s central bank confirmed it contacted Robinhood, asking for a full breakdown of how the hell these tokens, claiming to represent equity in OpenAI and SpaceX, actually work.
The central bank told CNBC it’s waiting on clear information before making any decision about whether the product is even legal. They’re focused on how the tokens are structured and how customers are being told what they’re buying.
Giedrius Šniukas, spokesperson for the Bank of Lithuania, said the financial watchdog expects Robinhood to explain both the internal mechanics of the OpenAI and SpaceX tokens and the kind of language the company is using in its promotions.
“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments,” Giedrius wrote. He added that whatever Robinhood is telling users must be “clear, fair, and non-misleading.” The bank regulates Robinhood across the EU since the company was granted both a brokerage and crypto service license there.
OpenAI denies any connection to Robinhood’s new product
The investigation comes days after OpenAI made it clear that Robinhood launched this whole thing without their input. On June 30, Robinhood rolled out tokenized stock products for EU users. These tokens were advertised as a way for people to invest in big firms, even ones that aren’t publicly traded.
Robinhood included OpenAI and SpaceX among the offerings. But OpenAI took to X, formerly Twitter, to say it didn’t approve anything.
“These ‘OpenAI tokens’ are not OpenAI equity,” the company wrote. “We did not partner with Robinhood, were not involved in this, and do not endorse it.” They also said any sale or transfer of OpenAI equity needs company approval, and they didn’t authorize this one. OpenAI told people to be cautious and stay away from assuming they’re buying real ownership.
Robinhood, in response, said the tokens are just a way to let regular investors get access to private markets. The company claims this is possible because of its ownership in a special purpose vehicle, though it didn’t explain exactly how that works.
There’s no clear info yet on whether the tokens are backed by actual shares or if they just simulate price movement. The Bank of Lithuania wants to figure that out before deciding if the whole setup violates any rules.
Compass Point raises Robinhood price target amid backlash
While Robinhood is now being questioned over the token launch, not everyone is turning away. On June 27, three days before the product dropped, Compass Point bumped up its price target for Robinhood Markets, Inc. from $64 to $96. The research firm stuck with its Buy rating, saying the company’s performance has been strong this year.
Compass Point’s analysts listed reasons they still see long-term upside. They mentioned that younger retail traders, especially Millennials and Gen Z, are driving demand. They also said Robinhood is gaining momentum because it’s using blockchain-based tools like tokenized assets and stablecoins, which could help reduce trading costs and add more flexibility.
They acknowledged that Robinhood got big off the meme-stock craze but said its users are evolving. The firm’s CEO, Vlad Tenev, backed that in an episode of Bloomberg’s “Odd Lots” podcast. Vlad said many traders are moving away from risky, fast bets and leaning into passive investing.
He claimed the company has seen more users choosing index-style funds over speculative crypto and SPAC trades. “A lot of people trade more actively at first and then eventually end up doing more passive investing—mostly because they don’t want to put in the time,” Vlad said.
Despite the regulatory mess over the tokens, Compass Point advised people to keep an eye on Robinhood in case the stock dips. The firm said it expects several factors to drive the price up in 2025, including continued retail growth, tech integration, and product expansion. But until Robinhood clears things up with the EU, the company’s push into private stock tokens might be stuck in limbo.