Overview - Tokenized equities (xStocks) can integrate with DeFi, including lending protocols and P2P trading [2] - xStocks function similarly to cryptocurrencies [1] Regulatory and Geographic Restrictions - xStocks are unavailable in the U S or to U S persons due to geo restrictions [3]

Core Insights - Robinhood Markets, Inc. is under investigation by Lithuania's central bank regarding its newly launched tokenized equity products [1] - The scrutiny follows Robinhood's launch of its Stock Tokens product in the EU, which offers blockchain-based access to shares, including private firms [2] - Lithuania is now Robinhood's primary EU regulator after granting it a brokerage and crypto asset license [2] Regulatory Concerns - The Bank of Lithuania has requested clarifications from Robinhood about the structure of OpenAI and SpaceX stock tokens and related consumer communication [3] - Robinhood defends its tokenized products by stating they are backed by ownership interests for indirect exposure to private markets, but regulators are concerned about transparency and legality [3][7] - Robinhood's expansion into tokenized equities in the EU is expected to face a challenging compliance review, which may have broader regulatory implications [4] Historical Regulatory Issues - Robinhood has faced significant regulatory scrutiny, resulting in fines and restrictions, including a $26 million settlement with FINRA in March 2025 for failing to address misconduct red flags [5] - In January 2025, the company paid a $45 million fine for violating multiple securities law provisions, and in September 2024, it faced a $3.9 million penalty for crypto withdrawal failures [6] - Despite these challenges, Robinhood's shares have increased by 150.8%, significantly outperforming the industry's 21.1% growth this year [6]

Regulatory Scrutiny - Robinhood is in discussions with regulators regarding its tokenized equities offering in Europe [1] - The launch of tokenized equities faced criticism from companies like OpenAI [1]

Industry Focus - Tokenized equities are emerging [1] - Onchain IPOs are being explored [1]

Core Viewpoint - Gemini has launched its first tokenized U.S. stock, MicroStrategy (Nasdaq: MSTR), in partnership with Dinari, marking a significant step in offering tokenized equities to European customers [2][3]. Group 1: Product Launch and Features - The tokenized equity offering allows Gemini users to trade fully backed MicroStrategy dSharesTM alongside cryptocurrencies, enhancing the trading experience with traditional market liquidity and transparent pricing [4]. - The rollout of this offering began for European customers and is expected to expand to additional regions, including the United States, in the coming months [5]. Group 2: Company Background and Strategy - Gemini has a history of introducing regulated, first-to-market products, including insured custody and SOC-certified exchanges, and aims to layer real-world stocks onto its existing platform that supports over 80 digital assets and safeguards approximately $8 billion in customer holdings [3]. - Dinari Inc. is recognized as the largest provider of tokenized U.S. public securities, enabling seamless access to U.S. public markets through its compliance-first, blockchain-based tokenization technology [8][9]. Group 3: Leadership and Vision - The partnership between Gemini and Dinari reflects a shared commitment to compliance and innovation, with both companies emphasizing a security-first approach to accessing real-world financial markets on-chain [6][7]. - Dinari has raised $22.65 million from notable investors, positioning itself as a key player in the tokenization of financial assets [10].