Robinhood Tokenized Stocks Face Scrutiny From Lithuania Central Bank

Robinhood Markets, Inc. HOOD is under investigation by Lithuania's central bank, its lead regulator in the European Union (EU), regarding its newly launched tokenized equity products. This was first reported by CNBC on Monday.

Concerns Over Robinhood’s Tokenized Stocks

The scrutiny follows Robinhood’s recent launch of its Stock Tokens product across the EU, aimed at offering blockchain-based tokenized access to shares, including those of private firms. Lithuania became Robinhood’s primary EU regulator after granting it a brokerage and crypto asset license. The offering sparked immediate questions from OpenAI, which openly distanced itself from HOOD’s product.
 
Giedrius Šniukas, a spokesman of the Bank of Lithuania, stated, “We have contacted Robinhood and are awaiting clarifications regarding the structure of OpenAI and SpaceX stock tokens as well as the related consumer communication.”

Meanwhile, Robinhood defended the tokens by highlighting that they are backed by ownership interests designed to provide investors with indirect exposure to private markets. Nonetheless, regulators remain wary, specifically regarding the transparency and legality of how these digital instruments are offered to retail investors.

For the time being, Robinhood’s expansion into tokenized equities in the EU is likely to undergo a challenging compliance review, with Lithuania’s assessment likely to reshape broader regulatory implications across the region.

Other Regulatory Probes Faced by HOOD

Robinhood has been facing regulatory scrutiny, resulting in hefty fines and restrictions. In March 2025, two units of Robinhood agreed to pay $26 million to settle the Financial Industry Regulatory Authority’s (FINRA) allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers.

In January 2025, the company agreed to pay a $45 million fine for violating more than 10 securities law provisions. In September 2024, the company faced a $3.9 million penalty to settle crypto withdrawal failures.

HOOD shares have skyrocketed 150.8%, outperforming the industry’s 21.1% growth this year.

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Currently, Robinhood carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Legal Scrutiny Faced by Other Financial Firms

Last month, Capital One COF faced a lawsuit by social media creators who claim that the bank’s free browser extension deprived them of commissions on sales generated through their content.

According to the creators, the Capital One Shopping browser extension is used to discover discounts. It erroneously reflected Capital One as the source of referral traffic at checkout, making it appear as if consumers had clicked the bank’s referral links before making purchases.

The creators alleged that this enabled Capital One to collect millions of dollars in commissions that rightfully belonged to bloggers, influencers, YouTubers and other content creators.

Similarly, in May, UBS Group AG UBS agreed to pay $511 million to resolve a tax probe by the U.S. Department of Justice against Credit Suisse for preparing false income tax returns and tax evasion. UBS Group AG acquired Credit Suisse in 2023.

UBS Group has agreed to the probe settlement as part of its inherited legal liabilities from Credit Suisse. The company will record the charge in its second-quarter 2025 results, while aiming to reduce the future legal cost reserves related to Credit Suisse.

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This article originally published on Zacks Investment Research (zacks.com).

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