The Bank of Lithuania, which serves as Robinhood’s primary regulator in the European Union, confirmed it is seeking detailed clarifications before assessing the products’ legality.
A spokesperson for the central bank told CNBC:
“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments.”
The brokerage announced plans to launch its private equity tokens and a new layer-2 blockchain on June 30, positioning itself as a major player in the rapidly growing tokenization sector.
However, OpenAI has distanced itself from the tokens, warning investors that Robinhood’s so-called OpenAI tokens do not provide any equity stake or direct ownership rights in the company.
The scrutiny comes as financial institutions ramp up efforts to capture a slice of the tokenization market, which is valued at over $24 billion as of June 30.
Major players such as BlackRock and Franklin Templeton have also entered the tokenization space, issuing tokenized money market funds and exploring blockchain-based settlements to improve efficiency and transparency.
For Robinhood, the regulatory probe in Lithuania could set an important precedent as the brokerage seeks to roll out its tokenization framework globally.
Its recent presentation at the EthCC conference in Brussels outlined plans to tokenize a wide range of financial instruments, but the backlash highlights the fine line between innovation and investor protection in the fast-evolving digital asset market.
