- Robinhood is building a blockchain platform to let European users trade tokenized U S stocks.
- The company may use Arbitrum or Solana to power the new platform for faster and cheaper transactions.
- Robinhood plans to expand in Europe after gaining a brokerage license and acquiring Bitstamp.
Robinhood Markets Inc. is developing a blockchain platform to offer tokenized U.S. stocks to investors in Europe. The firm is aiming to offer services that go beyond virtual currencies in the European Union. The new platform would enable retail investors to trade U.S. stocks through the use of blockchain technology.
Platform Under Discussion
Sources say Robinhood is in early talks with a digital asset company to build the platform. The discussions are not yet final, and no deal has been signed. The company is considering using the Arbitrum or Solana blockchain networks. Arbitrum runs as a layer-2 solution on Ethereum. Solana is popular for fast transactions and low fees.
Robinhood has not given any public statement about the development. The companies behind Arbitrum and Solana also declined to comment.
European Expansion Strategy
In recent months, Robinhood has shown interest in expanding across Europe. It recently secured a brokerage license in Lithuania. This license allows the company to offer stock trading services throughout the European Union.
Currently, Robinhood only offers cryptocurrency trading to EU users. The new license could help the firm provide access to tokenized stocks in a legal and secure way.
Robinhood also agreed to buy Bitstamp, a European crypto exchange. Bitstamp holds a license under EU trading laws. This could help Robinhood launch the new platform faster and offer more services.
What Are Tokenized Stocks?
Tokenized stocks are digital versions of regular stocks. They are stored on a blockchain and allow people to trade them at any time. This technology can reduce trading delays and lower settlement costs. It also removes the need for middlemen in many trading processes. A report by the Global Financial Markets Association says blockchain could save the financial sector $20 billion every year.
Industry Trends and Growth
Other large financial firms are exploring tokenized assets. BlackRock has raised over $2 billion for its tokenized fund. Franklin Templeton and Apollo have also launched blockchain-based investment products.
Robinhood’s plan fits into a larger trend. Many companies are moving toward blockchain to improve market access and efficiency. Analysts predict the tokenized asset market could reach $23.4 trillion by 2033. Robinhood’s platform could play a part in this growing market by opening U.S. stocks to more European investors.
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