CMC News

#Robinhood Stock Tokens Under Fire as EU Banking Regulator Launches Investigation

Lithuania's central bank has launched an inquiry into Robinhood's private equity token offerings.

OpenAI previously warned that Robinhood's tokens do not represent actual equity stakes.

The Bank of Lithuania is "awaiting clarifications" on the #tokenization platform's compliance.

Robinhood launched over 200 U.S. stock and ETF tokens on its layer-2 blockchain on June 30.

The controversial tokens provide derivative exposure rather than direct company ownership.

Galaxy Research confirmed these are "derivatives that provide indirect exposure to underlying assets."

Robinhood targets the $24 billion tokenization market alongside #BlackRock and Franklin Templeton.

Private credit and U.S. Treasury debt currently drive most tokenization activity.

Industry executives project tokenized equities could become a trillion-dollar #opportunity.

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