Digital brokerage Robinhood (HOOD) is extending its crypto footprint with a slate of latest 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 this time 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 funding app powered by crypto,” the corporate stated 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 help 24/7 buying and selling, self-custody and cross-chain bridging of tokenized belongings. A launch date has not been disclosed, however individuals acquainted with the matter stated it might go reside round later this 12 months, early subsequent 12 months.
“Our newest choices lay the groundwork for crypto to change into the spine of the worldwide monetary system,” Robinhood Chairman and CEO Vlad Tenev, stated 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 deliver 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 is probably an enormous alternative: the tokenized asset market might develop to $18.9 trillion by 2033, a report by Ripple and BCG projected.
A slew of widespread crypto exchanges, together with Bybit, Kraken and Gemini have only in the near past began to supply tokenized shares to customers, whereas Coinbase reportedly additionally seeks regulatory approval to take action.
Robinhood’s Tenev earlier this 12 months additionally touted asset tokenization as a strategy to broaden investor entry that belongings which are restricted to the rich, and advocated for clear U.S. laws to tokenize securities.
Whereas 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, instructed 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 by-product instrument amongst crypto merchants, for European customers. Trades are routed by way of Bitstamp, one of many world’s longest-running energetic crypto change which Robinhood acquired for $200 million.
The agency has additionally launched crypto staking for U.S.-based traders beginning with Ethereum’s ether
and Solana’s SOL that lets token holders earn rewards with out leaving the applying.
Moreover, Robinhood will add crypto rewards to its bank card providing later this fall, permitting U.S. clients to speculate cashback mechanically in digital belongings.
Learn extra: Robinhood Launches Micro Bitcoin, Solana and XRP Futures Contracts
