Robinhood is seeing a surge of curiosity from personal firms desperate to tokenize their shares after the agency launched its inventory token platform within the European Union final week.
In a Tuesday interview with Bloomberg Information, CEO Vlad Tenev stated the corporate has acquired a wave of requests from personal companies seeking to make their fairness accessible to retail buyers by blockchain-based tokens on their platform.
“Since our announcement, I’ve had a deluge of inquiries, personal firms that truly need to entry retail to have their shares tokenized and be part of this revolution,” he stated.
At present solely obtainable within the EU, the platform affords over 200 tokenized US equities tradable 5 days per week. It additionally included a promotional giveaway of non-tradable tokens representing personal firms like OpenAI and SpaceX.
Tenev stated Robinhood’s long-term aim is to carry hundreds of personal firms onto the platform. “We imagine [this] is a large alternative to resolve one of many largest inequities in capital markets, which is the truth that you’ve got these large firms which can be staying personal longer,” he stated.
Associated: Bitcoin, XRP, SOL futures launch on Robinhood
Robinhood’s tokenized platform faces scrutiny
Nonetheless, the rollout has drawn scrutiny. The Financial institution of Lithuania, which regulates Robinhood within the EU, requested clarification on how the tokens are structured. Tenev stated the agency welcomes the evaluate.
“They need to ensure that all the things is correct as a result of it’s a brand new progressive providing. We’re assured. We predict that these will not be solely necessary, however they’ll face up to the best type of scrutiny,” he stated.
The tokens are technically categorised as derivatives underneath the EU’s Markets in Crypto-Property Regulation (MiCA) and Markets in Monetary Devices Directive (MiFID) rules. They’re backed by underlying belongings held by US brokers, with tokens minted or burned as customers purchase or promote.
Tenev confirmed the agency is in discussions with regulators within the US and UK, however the platform isn’t but obtainable in these markets. He believes the US Securities and Trade Fee (SEC) has the authority to greenlight tokenization with out requiring new laws.
“The US shouldn’t be far behind. The chance is just too massive to disregard. Not only for retail but additionally institutional. And I feel they’re eager. They’re having tokenization roundtables on the SEC, which we’ve been part of,” he stated.
As reported, Galaxy Digital has stated that Robinhood’s tokenization transfer removes belongings from conventional market channels and brings them onchain, instantly difficult the concentrated liquidity and exercise that give main TradFi exchanges just like the NYSE their edge.
Cointelegraph reached out to Robinhood for remark however had not acquired a response by publication.
Associated: Tokenized fairness nonetheless in regulatory gray zone — Attorneys
Tokenization market stays red-hot
Robinhood’s tokenization transfer comes because the push towards bringing belongings onchain good points traction.
On Tuesday, Nasdaq-listed BioSig Applied sciences secured as much as $1.1 billion in funding from an undisclosed institutional investor to help its plan to tokenize the commodities market. The deal consists of $100 million in senior secured convertible debentures and a $1 billion fairness line of credit score.
In different information, the QCD Cash Market Fund (QCDT), a joint initiative by DMZ Finance and QNB, has acquired approval from the Dubai Monetary Providers Authority (DFSA), changing into the primary tokenized cash market fund established within the Dubai Worldwide Monetary Centre (DIFC).
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