Robinhood Launches Tokenization of Stock Trading, Partners with Arbitrum to Develop Exclusive Blockchain

Robinhood officially unveils its ambitions in the cryptocurrency space. With stock tokenization becoming the new battleground in the crypto market, following several trading platforms, Robinhood announces the launch of tokenized stock trading services, covering over 200 US stocks and ETFs, and introducing a dedicated RWA Layer2 Blockchain based on a certain Layer2 solution.

As a result of this news, Robinhood's stock price rose by over 12.7% to $93.6, setting a new historical high.

The EU launches US stock tokenization, develops official L2

Robinhood announced the provision of stock tokenization trading services to EU users, now supporting over 200 US stock assets for on-chain trading 24 hours a day, 5 days a week, including tokens from some well-known tech companies, and plans to expand to thousands by the end of this year.

This product only charges a 0.1% foreign exchange conversion fee to reduce the high intermediary costs for European investors to access the US market. In the future, users will be able to achieve self-custody of tokenized stocks and ETFs through Robinhood's crypto wallet, and can also choose a simplified operation experience without managing private keys.

Robinhood stated that it is developing its own Layer2 Blockchain specifically designed for RWA based on a certain Layer2 solution, tentatively named Robinhood Chain. Johann Kerbrat, General Manager of Robinhood Crypto, mentioned that the design of this new chain began several years ago, structured around RWA, aiming to break down the "walled garden" of traditional finance and achieve a more open and transparent asset trading experience.

To advance its business layout, Robinhood obtained a brokerage license in Lithuania in April this year, gaining the qualification to provide investment services across the EU. At the same time, Robinhood acquired a well-established cryptocurrency exchange for $200 million, further consolidating its technological and compliance foundation in the European market.

In addition to launching US stock tokenization products, Robinhood also announced a series of cryptocurrency asset features, including the ability for European users to trade crypto perpetual contracts with up to 3x leverage, and US users can stake ETH and SOL in compliant areas. Furthermore, Robinhood will launch a credit card that supports crypto cashback, a personalized AI assistant called Robinhood Cortex, offer a temporary 1% reward on crypto deposits, and introduce a "tax lot" feature to help users achieve better tax strategies when selling crypto assets.

Tokenization of stocks welcomes more players, Robinhood calls for regulatory reform

Recently, many cryptocurrency institutions have made the tokenization of securities an important part of their strategic expansion. Several trading platforms have launched or plan to launch tokenized stock trading services, covering regions including Europe, Latin America, Africa, and more.

For traditional brokers who are deeply constrained by compliance and clearing systems, the tokenization of securities is gradually leveraging the traditional landscape with its low threshold, flexibility, and combinability. In recent years, Robinhood has faced growth pressures in its traditional business, prompting it to diversify into the crypto business, achieving good results. In the first quarter of this year, Robinhood's total revenue increased by 50% year-on-year, with revenue from its crypto business doubling to $252 million.

Robinhood CEO Vlad Tenev publicly supports securities tokenization, believing it will initiate the most inclusive investment revolution since stock trading moved from the trading floor to electronic trading. He proposed that the U.S. should advance three key reforms: eliminate the wealth threshold for accredited investor status, establish a "securities token registration system," and provide a clear compliance pathway for crypto trading platforms.

Robinhood submitted a 42-page policy proposal to the U.S. SEC in May this year, calling for the establishment of the world’s first federal regulatory framework for RWA tokenization, and revealed plans to build an RWA trading platform, Robinhood RWA Exchange, based on certain blockchain platforms.