The race to tokenize traditional financial assets is accelerating, and Robinhood has officially entered the arena. Following in the footsteps of crypto giants like Coinbase and Kraken, Robinhood has announced the launch of tokenized stock trading, offering over 200 U.S. equities and ETFs on-chain. The move is powered by a strategic partnership with Arbitrum and includes the development of a dedicated Layer 2 blockchain—dubbed Robinhood Chain—specifically designed for Real-World Assets (RWA).
This bold step underscores Robinhood’s long-term vision to bridge traditional finance with decentralized infrastructure, unlocking 24/7 trading access, reducing barriers to entry, and expanding investment opportunities for retail investors worldwide.
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Launching Tokenized U.S. Stocks in the EU via Arbitrum-Powered Infrastructure
On June 30, during a high-profile event at EthCC in Cannes, France, Robinhood unveiled its new tokenized stock service for European users. The platform now supports on-chain trading of more than 200 U.S. stocks and ETFs, including highly sought-after private companies like OpenAI and SpaceX—assets typically inaccessible to average investors.
Trading is available 24 hours a day, five days a week, leveraging blockchain’s efficiency while aligning with traditional market settlement cycles. Robinhood plans to expand this offering to thousands of assets by the end of 2025, signaling aggressive growth ambitions in the RWA space.
To drive early adoption, eligible Robinhood EU users can claim free tokenized shares of private companies through the app until July 7. This promotional strategy not only boosts user engagement but also educates retail investors about the potential of asset tokenization.
Transaction costs remain minimal: Robinhood charges only a 0.1% foreign exchange conversion fee, significantly undercutting traditional brokerage fees that often deter European investors from accessing U.S. markets.
Users will have two custody options:
- Self-custody via Robinhood’s non-custodial crypto wallet, giving full control over private keys.
- A simplified experience for those who prefer not to manage keys directly, lowering the barrier for mainstream adoption.
Building Robinhood Chain: A Purpose-Built L2 for Real-World Assets
Beyond simply listing tokenized stocks, Robinhood is constructing its own Layer 2 blockchain tailored for RWA—tentatively named Robinhood Chain. Built using Arbitrum’s Stylus technology, this custom L2 aims to address scalability, compliance, and interoperability challenges inherent in bringing regulated financial instruments on-chain.
Johann Kerbrat, General Manager of Robinhood Crypto, revealed that the architecture has been in development for years, designed from the ground up to support compliant, transparent, and efficient trading of real-world assets. The goal? To dismantle the “walled gardens” of traditional finance and create an open, permissionless ecosystem where anyone can invest in high-growth private companies long before they go public.
The integration with Arbitrum isn’t new. Robinhood Wallet already supports Arbitrum networks, and recent collaborations—such as joint appearances at developer conferences and co-promotion on Arbitrum Portal—signal a deepening alliance. Market sentiment reflects this: Arbitrum’s native token ARB surged over 25% in early July, partly driven by anticipation around Robinhood’s announcement.
Strategic Moves Paving the Way
Robinhood’s entry into tokenized assets didn’t happen overnight. Several strategic moves laid the foundation:
- Acquisition of Bitstamp: In early 2024, Robinhood acquired the Luxembourg-based crypto exchange Bitstamp for $200 million, strengthening its European compliance and technical infrastructure.
- Lithuanian Broker License: Enabled Robinhood to offer investment services across the EU, crucial for launching regulated financial products.
- Talent Hiring: A now-closed job posting sought a product manager to build a multi-chain crypto architecture, hinting at broader ambitions beyond a single blockchain.
These steps position Robinhood not just as a brokerage app, but as a full-stack financial platform merging traditional capital markets with Web3 innovation.
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Expanding Crypto Offerings Alongside Tokenized Stocks
Alongside its RWA push, Robinhood rolled out several new crypto features:
- 3x leveraged perpetual contracts for European users (no expiry dates).
- ETH and SOL staking availability for U.S. users in compliant regions.
- A crypto-rewards credit card, offering cashback in digital assets.
- Robinhood Cortex, an AI-powered personal finance assistant.
- A temporary 1% bonus on crypto deposits.
- Tax batching tools to help users optimize capital gains strategies during asset sales.
These enhancements reflect a broader shift: Robinhood is transforming from a zero-commission stock app into a comprehensive digital asset platform.
Regulatory Advocacy: Pushing for Change in U.S. Securities Law
While Europe leads in regulatory clarity for tokenized securities, the U.S. lags behind. Recognizing this gap, Robinhood CEO Vlad Tenev has become a vocal advocate for reform.
In a January op-ed published in The Washington Post, Tenev highlighted the growing investment inequality caused by outdated regulations. He pointed out that companies like OpenAI and SpaceX remain private for decades, enriching only accredited investors—those with over $1 million in net worth or $200,000 in annual income—while excluding 80% of American households.
Tenev argues that blockchain technology can democratize access by enabling fractional ownership and peer-to-peer trading of private equity with minimal legal overhead.
To unlock this potential, he proposes three key reforms:
- Replace wealth-based accreditation with knowledge- and risk-based assessments.
- Establish a Securities Token Registration Framework to allow中小 enterprises to raise capital via tokenized offerings without undergoing full IPOs.
- Provide clear regulatory pathways for both centralized and decentralized exchanges to list and trade security tokens legally.
In May, Robinhood submitted a 42-page policy proposal to the SEC, including a nine-page commentary on asset tokenization. Notably, it revealed plans to build the Robinhood RWA Exchange on Solana and Base, indicating a multi-chain approach despite its strong ties to Arbitrum.
Competitive Landscape: Who Else Is in the Tokenized Stock Game?
Robinhood isn’t alone:
- Kraken: Offers tokenized stocks to non-U.S. clients across Europe, Africa, and Latin America.
- Coinbase: Seeking SEC approval to launch tokenized securities.
- Gemini: Partnered with Dinari to offer MSTR tokenization in the EU.
- Dinari: Became the first U.S.-registered broker-dealer approved to issue tokenized stocks.
Despite competition, Robinhood’s massive retail user base—over 26 million funded accounts—gives it a significant distribution advantage.
FAQ: Your Questions About Tokenized Stocks Answered
Q: What are tokenized stocks?
A: Tokenized stocks are blockchain-based representations of real company shares. Each token mirrors the value and rights of the underlying stock but trades on decentralized networks, enabling faster settlement and global access.
Q: Are tokenized stocks regulated?
A: Regulation varies by jurisdiction. In the EU, frameworks exist for digital securities; in the U.S., the SEC has yet to provide clear guidance, creating uncertainty for domestic platforms.
Q: Can I vote or receive dividends from tokenized stocks?
A: It depends on the issuer. Some platforms replicate shareholder rights; others offer price exposure only. Robinhood has not yet detailed governance rights for its tokenized shares.
Q: How does Robinhood Chain differ from other L2s?
A: Unlike general-purpose L2s, Robinhood Chain is purpose-built for RWAs, prioritizing compliance, identity verification, and integration with legacy financial systems.
Q: Is my money safe trading tokenized stocks?
A: While blockchain adds transparency, risks include smart contract vulnerabilities, regulatory changes, and limited recourse compared to traditional brokerages.
Q: Will tokenized stocks replace traditional ones?
A: Not immediately—but they’re poised to complement them by expanding access, lowering costs, and enabling programmable finance features like automated dividends or cross-border transfers.
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Final Thoughts: The Future of Investing Is On-Chain
Robinhood’s move into tokenized stocks marks a pivotal moment in financial evolution. By combining mass-market appeal with cutting-edge blockchain infrastructure, it’s pushing toward a future where anyone, anywhere, can invest in transformative companies—regardless of wealth status or geography.
With Arbitrum as its technological backbone and a clear roadmap for regulatory engagement, Robinhood is betting big on RWA as the next frontier of retail investing.
As zero-commission trading becomes table stakes, platforms that integrate real-world assets, DeFi functionality, and AI-driven personalization will define the next generation of finance.
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