Robinhood enters the tokenized stock market, partnering with Arbitrum to develop a dedicated blockchain

Robinhood officially announced the launch of tokenized stock trading services, covering more than 200 U.S. stocks and ETFs, and based on a well-known Layer 2 public chain, it launched a dedicated Layer 2 blockchain for RWA. This move marks Robinhood's formal unveiling of its strategic layout in the cryptocurrency field.

Affected by this news, Robinhood's stock price rose more than 12.7% to $93.6 at the close on June 30, reaching an all-time high at one point.

Robinhood announced at a press conference in Cannes, France on June 30 that it will offer stock tokenization trading services to EU users. Currently, over 200 US stock assets are supported for on-chain trading available 24 hours a day, 5 days a week, including tokens from some well-known private companies. The company plans to expand the tradable varieties to thousands by the end of this year.

To reduce the high intermediary costs for European investors accessing the US market, this product only charges a 0.1% foreign exchange conversion fee. In the future, users will be able to achieve self-custody of tokenized stocks and ETFs through Robinhood's crypto wallet, and they can also choose a simplified operational experience that does not require managing private keys.

In addition, Robinhood stated that it is developing its own Layer2 Blockchain specifically designed for RWA based on a well-known Layer2 public chain, 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 this 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, the company acquired an 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 that European users will be able to trade crypto perpetual contracts with up to 3x leverage, while US users can stake ETH and SOL in compliant areas. Furthermore, the company will introduce a credit card that supports crypto cashback, a personalized AI assistant called Robinhood Cortex, a temporary 1% reward on crypto deposits, and the introduction of a "tax lot" feature to help users achieve better tax strategies when selling crypto assets.

Recently, many cryptocurrency institutions have regarded the tokenization of securities as an important part of their strategic expansion. Some well-known trading platforms have allowed non-U.S. clients to trade stocks in token form, or are seeking regulatory approval to launch tokenized stock services.

Robinhood CEO Vlad Tenev has publicly expressed support for the tokenization of securities, believing that this technology can usher in the most inclusive investment revolution since the shift from trading floors to electronic trading. He proposed that the U.S. should advance three key reforms: abolishing the wealth-based accredited investor system, establishing a "securities token registration system," and providing a clear compliance path for crypto trading platforms.

In May of this year, Robinhood submitted a 42-page policy proposal to the U.S. SEC, which included a comment letter on asset tokenization, calling for the establishment of the world's first federal regulatory framework for RWA tokenization.