On July 8, according to Bloomberg, Robinhood Markets Inc. CEO Vlad Tenev stated that the company is communicating with regulators regarding its tokenized stock product launched in Europe, after the product drew criticism from several companies, including OpenAI.

The Menlo Park, California-based company announced last week that retail investors in the European Union could begin trading blockchain tokens representing U.S. stocks through its application. The launch also included tokens for non-publicly traded companies like OpenAI. However, OpenAI, led by Sam Altman, later reminded traders that these "tokens" do not represent equity in the company.

The brokerage is facing inquiries from regulators, including the Bank of Lithuania, regarding the structure of these tokens and whether they blur the lines between actual equity and derivatives. The Bank of Lithuania has confirmed that it has contacted Robinhood to learn more about the details. [BlockBeats]