Robinhood has become a hot topic recently, with share prices jumping by 26%. The brokerage has completed the acquisition of the cryptocurrency exchange Bitstamp and is introducing tokenized U.S. stocks for European traders.

During turbulent times in the crypto market, Robinhood’s stock has emerged as a top performer, driven by critical strategic announcements. The surge in share prices can be attributed to the unveiling of its tokenized equities service aimed at traders in the European Union.

Additionally, the recent $200 million acquisition of Bitstamp, a regulated exchange in the EU, has significantly boosted demand for Robinhood’s offerings. Johann Kerbrat, General Manager of Robinhood Crypto, expressed that the acquisition of Bitstamp enables the company to broaden its reach beyond U.S. markets.

Robinhood’s move toward crypto and blockchain has attracted considerable attention from both institutional and retail investors, especially as it forges connections between traditional finance (TradFi) and decentralized finance (DeFi). Since launching crypto trading in 2018, the platform has continuously expanded its user base and currently boasts over 25 million funded accounts.

The appeal of Robinhood is bolstered by its simple interface and commission-free model, making it a favorite among retail investors interested in various cryptocurrencies.

The Rise Of Robinhood, Acquisition of Bitstamp

The recent increase in Robinhood’s share price was facilitated by the launch of its platform for tokenized equities, which caters to traders in the EU. The Bitstamp acquisition further underscored Robinhood’s commitment to expanding its crypto services internationally.

Focus on RWA Tokenization

While there are concerns regarding the legality of their tokenized stock offerings tied to well-known U.S. stocks, the aim is to provide around-the-clock trading through Arbitrum, which is an Ethereum layer-2 solution. All settlements will still occur within traditional markets.

“At our recent crypto event, we announced a limited Stock Token giveaway on OpenAI and SpaceX to eligible European customers.” - Vlad Tenev

The Bank of Lithuania has introduced oversight on Robinhood’s stock tokens, ensuring clarity and protection for investors. Despite some uncertainty, CEO Vlad Tenev remains optimistic about tokenizing securities, asserting that this innovation aligns with Robinhood’s mission to democratize finance.