Key Highlights:
- Robinhood is enhancing its cryptocurrency offerings by creating its own blockchain infrastructure and rolling out tokenized stock trading for users in Europe.
- The new platform will grant access to over 200 U.S. equities and ETFs, allowing continuous trading on weekdays.
- Additionally, the firm is introducing perpetual swaps for European users and crypto staking options for U.S. investors.
Digital brokerage Robinhood (HOOD) is extending its cryptocurrency presence with various innovative features, including the creation of its own blockchain network built on Arbitrum. On Monday, the company announced the introduction of tokenized stock trading aimed at European clientele.
The newly launched stock token offering runs on the Ethereum layer-2 solution Arbitrum, providing access to a wide range of U.S. stocks and ETFs with 24/7 trading options during weekdays. This move is part of Robinhood’s effort to develop a fully-integrated investment app powered by cryptocurrency, as disclosed in a notification sent to CoinDesk.
Robinhood App on a Smartphone (Shutterstock)
The company confirmed it is creating a layer-2 blockchain optimized for these tokenized assets, emphasizing the support for round-the-clock trading and self-custody features.
“We will continue to work with regulators and bring the entire Robinhood ecosystem on-chain,” stated CEO Vlad Tenev during the launch event in Cannes, France.
In addition to enhancing trading experiences with tokenized stocks, Robinhood also plans to offer private equity tokens, starting with shares from OpenAI and SpaceX, aiming to democratize access to investments typically reserved for affluent individuals.
As competition with various digital asset exchanges intensifies, Robinhood’s efforts to tokenize assets could yield significant opportunities, with the tokenized asset market projected to reach $18.9 trillion by 2033 according to a report by Ripple and BCG.
