Robinhood (NASDAQ: HOOD) is
working on a blockchain-based platform that would allow retail investors in
Europe to trade US securities, according to people familiar with the matter.
The initiative would expand the company’s European presence beyond its current
cryptocurrency offerings in the region.
Robinhood Developing
Blockchain Platform for European Trading of US Securities
The
platform is expected to launch through a partnership with a digital asset firm,
with both Arbitrum and Solana blockchains under consideration, though no final
agreement has been reached. Neither Robinhood nor the potential blockchain
partners have officially commented on the development, first
reported by Bloomberg.
This move
aligns with growing interest in tokenized securities across the financial
industry. By representing traditional financial instruments on blockchain
technology, companies can potentially reduce costs associated with traditional
trading infrastructure while increasing transparency and standardization.
“Tokenized
securities can really push forward US company dominance in the global
market,” Robinhood CEO Vlad Tenev said in a March podcast. “Right
now, it’s very difficult to invest in a US company if you’re overseas.”
Robinhood
has been strategically positioning itself for European expansion, securing a
brokerage license in Lithuania last month that allows it to offer investment
services throughout the European Union. The company also signed a deal to
acquire crypto exchange Bitstamp in June 2024.
$5 Billion in Tokenized
RWAs and $20 Billion in Blockchain
There’s
serious money at stake. The real-world asset (RWA) tokenization market has
already attracted $5 billion in investments, with forecasts projecting an
average annual growth rate of 25%.
The
initiative comes as major financial institutions increasingly explore
blockchain applications. A Global Financial Markets Association report suggests
distributed ledger technology could unlock approximately $20 billion annually
in global clearing and settlement costs.
Financial
giants including BlackRock, Franklin Templeton, and Apollo have already
launched tokenized funds, with BlackRock’s USD Institutional Digital Liquidity
Fund attracting over $2 billion since its launch last year.
Robinhood
shares rose 2.7% following reports of the blockchain initiative, despite the
company reporting an almost 9% revenue decline in the first quarter of 2025.
Robinhood (NASDAQ: HOOD) is
working on a blockchain-based platform that would allow retail investors in
Europe to trade US securities, according to people familiar with the matter.
The initiative would expand the company’s European presence beyond its current
cryptocurrency offerings in the region.
Robinhood Developing
Blockchain Platform for European Trading of US Securities
The
platform is expected to launch through a partnership with a digital asset firm,
with both Arbitrum and Solana blockchains under consideration, though no final
agreement has been reached. Neither Robinhood nor the potential blockchain
partners have officially commented on the development, first
reported by Bloomberg.
This move
aligns with growing interest in tokenized securities across the financial
industry. By representing traditional financial instruments on blockchain
technology, companies can potentially reduce costs associated with traditional
trading infrastructure while increasing transparency and standardization.
“Tokenized
securities can really push forward US company dominance in the global
market,” Robinhood CEO Vlad Tenev said in a March podcast. “Right
now, it’s very difficult to invest in a US company if you’re overseas.”
Robinhood
has been strategically positioning itself for European expansion, securing a
brokerage license in Lithuania last month that allows it to offer investment
services throughout the European Union. The company also signed a deal to
acquire crypto exchange Bitstamp in June 2024.
$5 Billion in Tokenized
RWAs and $20 Billion in Blockchain
There’s
serious money at stake. The real-world asset (RWA) tokenization market has
already attracted $5 billion in investments, with forecasts projecting an
average annual growth rate of 25%.
The
initiative comes as major financial institutions increasingly explore
blockchain applications. A Global Financial Markets Association report suggests
distributed ledger technology could unlock approximately $20 billion annually
in global clearing and settlement costs.
Financial
giants including BlackRock, Franklin Templeton, and Apollo have already
launched tokenized funds, with BlackRock’s USD Institutional Digital Liquidity
Fund attracting over $2 billion since its launch last year.
Robinhood
shares rose 2.7% following reports of the blockchain initiative, despite the
company reporting an almost 9% revenue decline in the first quarter of 2025.
This post is originally published on FINANCEMAGNATES.
