Launches Tokenized Stocks on Arbitrum, Develops Own Blockchain

Digital brokerage Robinhood (HOOD) is extending its crypto footprint with a slate of recent choices, together with creating its personal blockchain community based mostly on Arbitrum

and launching tokenized shares buying and selling, the corporate introduced on Monday.

The agency at the moment has debuted its inventory token providing, issued on the Ethereum layer-2 Arbitrum, for European customers, giving entry to over 200 U.S. equities and ETFs witt around-the-clock buying and selling throughout weekdays. With the launch, Robinhood is increasing its crypto-focused EU app with tokenized shares into an “all-in-one investment app powered by crypto,” the corporate mentioned in a launch shared with CoinDesk.

The agency additionally confirmed it is constructing its personal layer-2 blockchain community optimized for tokenized belongings. The upcoming chain, based mostly on the Arbitrum tech stack, is aimed to assist 24/7 buying and selling, self-custody and cross-chain bridging of tokenized belongings. A launch date has not been disclosed, however individuals aware of the matter mentioned it may go dwell round later this yr, early subsequent yr.

“Our latest offerings lay the groundwork for crypto to become the backbone of the global financial system,” Robinhood Chairman and CEO Vlad Tenev, mentioned in a press release.

Robinhood’s push into tokenized belongings comes as competitors with digital asset exchanges is heating as much as provide a unified buying and selling hub for all types of monetary devices. Asset tokenization is a read-hot sector that goals to carry real-world belongings together with equities, funds, actual property onto blockchain rails promising cheaper, quicker and extra environment friendly settlements and around-the-clock buying and selling. It’s probably an enormous alternative: the tokenized asset market may develop to $18.9 trillion by 2033, a report by Ripple and BCG projected.

A slew of well-liked crypto exchanges, together with Bybit, Kraken and Gemini have only recently began to supply tokenized shares to customers, whereas Coinbase reportedly additionally seeks regulatory approval to take action.

Robinhood’s Tenev earlier this yr additionally touted asset tokenization as a strategy to broaden investor entry that belongings which might be restricted to the rich, and advocated for clear U.S. laws to tokenize securities.

While rivals have teamed up with regulated asset tokenization specialists to supply inventory tokens, Robinhood is constructing its personal tokenization engine to take action, Seong Lee, head of crypto merchandise, informed CoinDesk in an interview.

Perps in EU, crypto staking in US

As a part of the agency’s crypt push, Robinhood is rolling out perpetual futures, a preferred spinoff instrument amongst crypto merchants, for European customers. Trades are routed via Bitstamp, one of many world’s longest-running energetic crypto alternate which Robinhood acquired for $200 million.

The agency has additionally launched crypto staking for U.S.-based buyers beginning with Ethereum’s ether

and Solana’s SOL that lets token holders earn rewards with out leaving the applying.

Additionally, Robinhood will add crypto rewards to its bank card providing later this fall, permitting U.S. clients to take a position cashback mechanically in digital belongings.

Read extra: Robinhood Launches Micro Bitcoin, Solana and XRP Futures Contracts