Robinhood's stock reached an all-time high of 10% following the company's announcement of tokenized shares for private companies OpenAI and SpaceX. This new offering, showcased during a product event in Cannes, is part of Robinhood's strategy to expand its presence in the cryptocurrency market, particularly in Europe. The tokenized assets will be available exclusively through Robinhood's crypto application in the European Union, which now offers over 200 tokenized stocks and ETFs for trading without commissions or spreads, 24/5.
The introduction of these tokenized shares marks a significant milestone as it allows broader access to equity in companies that are not publicly traded, previously available only to insiders and wealthy investors. Johann Kerbrat, senior vice president and general manager of crypto at Robinhood, emphasized the goal of democratizing access to investment opportunities. To promote the launch, Robinhood is providing eligible EU users with 5 euros worth of OpenAI and SpaceX tokens if they start trading by July 7, with a total of $1.5 million allocated for this initiative.
Despite the positive developments in Europe, U.S. users will not have immediate access to these tokenized shares due to existing regulatory challenges, particularly those concerning accredited investor restrictions. CEO Vlad Tenev has advocated for reforms that would facilitate broader participation in private markets through blockchain technology. In addition to these developments, Robinhood has also reintroduced crypto staking for Ethereum and Solana in the U.S., expanding its offerings in the domestic market.