Robinhood CEO: "We will continue to expand tokenized stocks"

As Robinhood's recently launched tokenized stock product comes under the spotlight, Robinhood CEO Vladimir Tenev expressed his determination to push forward, stating that they plan to expand to thousands of unlisted companies.

On the 21st (local time), CEO Tenev said in an interview with Decrypt, "It is a very meaningful milestone that we were the first to tokenize excellent companies," and added, "There is always controversy when trying something new for the first time."

Earlier this month, Robinhood tokenized and distributed shares of unlisted companies, including OpenAI. However, these tokens do not provide actual equity or voting rights and simply track the secondary market valuation. OpenAI immediately responded by officially denying involvement in the product.

Despite the controversy, CEO Tenev said, "This launch delivered a product that provides real utility to customers," and "From this perspective, I see it as a great success." He added, "We are looking to expand this model to more companies and move to the next stage."

The U.S. Securities and Exchange Commission (SEC) also issued a warning about Robinhood's experiment. A few days after the product launch, the SEC released an official statement saying, "Blockchain technology cannot change the fundamental nature of an asset," and, "Tokenized securities are still securities and must comply with relevant laws." SEC Commissioner Hester Peirce emphasized, "Market participants must consider and meticulously comply with federal law."

In response, CEO Tenev said, "Commissioner Peirce's remarks were not a direct reference to Robinhood," and "The SEC also wants tokenization to happen safely and is working on establishing the right framework. Robinhood is also taking part in that process."

Meanwhile, Robinhood plans to integrate DeFi products based on tokenized stocks. While U.S. regulations and company pushback may intensify, the company aims to position itself, in the long term, as a new model leading innovation in the unlisted stock market.