Robinhood enters the tokenization stock market, partnering with Arbitrum to layout RWA

Robinhood officially announced the launch of tokenized stock trading services, marking its formal entry into the cryptocurrency market. The company will offer tokenized trading for over 200 US stocks and ETFs, and will develop a blockchain specifically for physical assets (RWA) based on a certain Layer 2 solution.

This news drove Robinhood's stock price to soar. As of the market close on June 30, the company's stock price rose by 12.7% to $93.6, setting a new historical high.

At the press conference held in Cannes, France, Robinhood announced the launch of stock tokenization trading services for EU users. Currently, over 200 U.S. stock assets are supported for on-chain 24/5 trading, including tokens of certain well-known technology companies. The company plans to expand the supported assets to thousands by the end of this year.

To reduce the cost for European investors entering 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, or choose a simplified operating experience.

Robinhood also revealed that it is developing a Layer 2 blockchain specifically designed for RWA, tentatively named Robinhood Chain. The head of the company's crypto business stated that the design of this new chain began a few years ago, aiming to break the closed ecosystem of traditional finance and achieve a more open and transparent asset trading experience.

Earlier this year, reports indicated that Robinhood is actively developing a blockchain-based platform that allows European retail investors to trade U.S. tokenized stocks. To advance this business, Robinhood has obtained a brokerage license in Lithuania and acquired the established cryptocurrency exchange Bitstamp, consolidating its presence in the European market.

In addition to launching tokenized products for US stocks, Robinhood has also announced a range of crypto asset features, including the ability for European users to trade crypto perpetual contracts with up to 3x leverage, and US users to stake certain cryptocurrencies in compliant areas. Additionally, features such as a credit card supporting crypto cashback, AI assistants, and crypto deposit rewards will also be introduced.

Recently, many cryptocurrency institutions have made the tokenization of securities a strategic focus. Some trading platforms have allowed non-U.S. clients to trade stocks in token form, while others are seeking regulatory approval to launch related services.

For traditional brokerages, securities tokenization is gradually changing the industry landscape with its low barriers to entry, flexibility, and combinability. Robinhood, which started as a retail securities trading platform, has also begun to diversify its cryptocurrency business in recent years and has achieved good results. In the first quarter of this year, the company's cryptocurrency business revenue doubled year-on-year to $252 million.

Robinhood CEO publicly supports the tokenization of securities, believing it will usher in a more inclusive investment revolution. He pointed out that currently, investment opportunities in private equity in the United States are limited to a small number of high-net-worth individuals, while crypto technology can allow ordinary investors to participate earlier in investments in quality companies.

However, the United States has not yet provided clear guidance on the legal issuance and trading of tokenized securities. Robinhood is calling for three key reforms: the elimination of the wealth-based accredited investor system, the establishment of a securities token registration system, and the provision of a compliance pathway for cryptocurrency trading platforms. The company has also submitted detailed policy recommendations to regulators, urging the establishment of a regulatory framework for RWA tokenization.