OpenAI has publicly stated that the "OpenAI tokens" recently launched by Robinhood are not equity in the company and were listed without its consent. The AI firm clarified its position following Robinhood's announcement of offering tokenized shares of over 200 firms, including OpenAI and SpaceX, to European Union users.

In a statement posted on X (formerly Twitter), OpenAI asserted, "These 'OpenAI tokens' are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it". The company further emphasized that any transfer of OpenAI equity requires its approval, which was not granted in this case. OpenAI cautioned investors to "be careful," highlighting that any equity movement in the private firm must be approved by its board.

Robinhood’s CEO, Vlad Tenev, had showcased a tokenized stock trade for an “OpenAI” position at an event in Cannes, France, on June 30. The presentation highlighted Robinhood's forthcoming layer-2 blockchain, built with Arbitrum technology, which would allow eligible European users to trade over 200 US equities and exchange-traded funds 24/7 with no commissions or spreads. The shares would be converted into on-chain tokens for transfer and settlement.

Robinhood has expanded its offerings to include tokenized US stock and ETF tokens in the European Union, providing users with new investment opportunities. The firm has deployed approximately 213 tokenized equities on the Arbitrum blockchain, including stocks of Microsoft, Nvidia, and OpenAI. Blockchain data indicates the tokens were minted for just over $5 in gas fees, averaging about three cents each.

Tokenized shares of private company equity do not grant the holder shareholder rights but offer a way for investors to gain exposure to these private companies, as the tokens directly track the value of the company's shares.

The Securities Industry and Financial Markets Association (SIFMA) has urged the US SEC to reject tokenized equity products launched through exemptive relief, calling instead for a transparent, public process.

This situation highlights the complexities and potential risks associated with tokenized equity. While blockchain technology offers advantages like transparency and security, it also presents challenges related to authorization and endorsement. This incident serves as a reminder for companies to carefully manage their brand and intellectual property in the evolving digital landscape.