Tokenization Begins: A New Way to Buy Private Shares

Want to own shares of SpaceX or OpenAI?

How about owning shares of other real-world innovators shaping the future?

As of today, buying shares in these private companies outright isn’t possible for most investors.

But a recent move from Robinhood could be the first real glimpse into a future where that changes.

It’s called tokenized trading, and today I’m breaking it down into simple terms – no crypto fluency required.

What Is Tokenized Trading?

Think of tokenized trading as turning a stock into a secure, digital asset that can be bought, sold, and held 24/7.

Instead of owning a traditional share certificate, you own a token (a digital representation of that stock) powered by blockchain technology.

This token mirrors the value of the real stock and may even include rights like dividends or voting (depending on how it’s structured).

It’s not just for public stocks either.

Private companies (like SpaceX and OpenAI) are now entering the conversation through tokenized offerings.

Free SpaceX and OpenAI Tokens

On Monday, Robinhood quietly launched tokenized versions of SpaceX and OpenAI shares for European users.

That’s right. Investors in the EU can now get exposure to these private giants via digital tokens.

To kick things off, Robinhood is giving away €5 worth of these tokens to eligible users who sign up by July 7.

There’s a total pool of $1 million worth of OpenAI tokens and $500,000 for SpaceX.

These aren’t the actual shares, and you won’t get invited to the next Mars launch or AI summit.

But they are digital stand-ins – financial instruments that track the value of the underlying companies, offering a way to participate in their potential growth.

Why Tokenized Trading Matters

This isn’t just a gimmick. It’s a glimpse into the future.

Here’s why tokenized assets could be a game-changer:

• Access to Private Markets: The biggest deal: tokenized assets could give regular investors access to private companies previously reserved for VCs and insiders. And according to Robinhood CEO Vlad Tenev, other private markets like art and real estate could be next.
• Fractional Ownership: You don’t need $100,000+ to invest in private companies. With tokens, you might buy 0.01% of a share – just like fractional shares on popular brokerage apps.
• 24/7 Trading: Traditional markets sleep. Blockchains don’t. You can trade tokenized stocks day or night, even on weekends.
• Lower Costs: Fewer middlemen (like brokers and clearinghouses) means fewer fees and faster settlement times.

Here’s the Catch (for Now)

It’s not all smooth sailing.

• Regulatory Barriers: In the U.S., buying private shares usually requires you to be an “accredited investor.” Tokenization doesn’t yet get around that.
• Liquidity Risks: Many of these tokens aren’t freely tradable yet. You may be able to buy them, but not sell them easily.
• Technology Growing Pains: Bugs, smart contract errors, or delays can still happen. Blockchain is powerful – but not perfect.
• Not Legal Ownership (Yet): In many cases, token holders don’t have the same rights as shareholders. These are still synthetic or derivative-based assets.

My Final Thoughts

Robinhood’s move into tokenized trading isn’t just a marketing stunt.

It’s a preview of where the investing world is headed.

Tokenized trading could completely change who gets access to the biggest opportunities in the world.

For decades, owning a piece of a company like SpaceX or OpenAI was a fantasy unless you had venture capital connections or millions in the bank.

Now? We’re inching closer to a future where regular investors can finally participate.

We’re not there yet. Especially in the U.S., where regulations are still catching up.

But the rails are being built. The platforms are evolving. And the interest is clearly there.

It’s a space worth paying attention to – not because it’s investable today, but because it may reshape what investing looks like tomorrow.