Regulators in the European Union have raised concerns over Robinhood’s latest investment product, prompting an official investigation. According to a Monday report from CNBC, the Bank of Lithuania—Robinhood’s primary financial regulator in the region—has launched a probe into the company’s recently unveiled stock token offering.
Launched on July 30, the new product allows investors to gain exposure to private companies such as SpaceX and OpenAI through blockchain-based digital tokens. As part of its rollout strategy, Robinhood offered a promotional incentive: eligible EU users could receive €5 worth of SpaceX and OpenAI tokens if they registered by a specified deadline.
However, the tokens have drawn regulatory attention after OpenAI publicly denied any involvement with Robinhood. The AI company clarified that it had neither partnered with Robinhood nor authorized the distribution of its shares, emphasizing that the tokens did not represent actual equity.
In response, Robinhood stated that while the tokens don’t constitute formal equity stakes, they still provide retail investors with financial exposure to the underlying private assets. “While it is true that they aren’t technically ‘equity’ (you can see the precise dynamics in our Terms for those interested), the tokens effectively give retail investors exposure to these private assets,” explained CEO Vlad Tenev.
The Bank of Lithuania, which previously granted Robinhood its brokerage and crypto asset service licenses, is now seeking further details about the product. The central bank aims to assess whether the tokens comply with legal and regulatory standards and how they’re being presented to consumers.
“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments,” the bank reportedly stated. “The information for investors must be provided in clear, fair, and non-misleading language.”
