Robinhood has submitted an in depth proposal to the US Securities and Trade Fee (SEC), calling for the creation of a federal framework to manage tokenized real-world belongings (RWAs), which signify a possible $30 trillion market, Forbes reported on Could 20.
The 42-page submitting outlines a authorized infrastructure that will permit digital tokens representing conventional monetary devices, equivalent to equities, bonds, and actual property, to be handled as equal to the underlying belongings.
The proposal goals to modernize how belongings are issued, traded, and settled within the US by integrating blockchain-based mechanisms inside present securities regulation.
Unified framework
Robinhood’s proposal emphasizes that present approaches to RWA tokenization have remained largely fragmented, working in remoted pilots and regulatory sandboxes regardless of staggering progress.
In contrast, the corporate is advocating for a unified nationwide framework that will allow broker-dealers to challenge and commerce tokenized securities underneath a standardized compliance mannequin, eradicating the necessity for parallel programs.
In line with the report, the initiative contains plans for a brand new platform known as the Actual World Asset Trade (RRE), which might characteristic off-chain commerce matching paired with on-chain settlement.
The platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) instruments supplied by third-party suppliers equivalent to Jumio and Chainalysis to make sure compliance with world regulatory requirements.
If adopted, the framework may eradicate authorized ambiguities surrounding asset possession and scale back settlement instances, whereas preserving investor protections underneath present securities regulation.
Retail entry to market infrastructure
Robinhood, broadly identified for its function in retail inventory and crypto buying and selling, is now positioning itself as a contributor to regulatory infrastructure to convey conventional finance on-chain.
Its submitting argues that tokenized belongings shouldn’t be categorised as derivatives or artificial devices however acknowledged as direct representations of conventional monetary merchandise.
The report famous that the corporate just isn’t proposing new blockchain know-how, however quite authorized interoperability to anchor tokenized finance to present compliance requirements.
Robinhood’s method seeks to open the door for broader institutional adoption, providing a scalable path to onchain monetary markets inside the US authorized system.
Whereas the SEC has not but responded to the proposal, Robinhood’s submitting could function a take a look at case for a way regulators view asset-token equivalence. The success of the initiative will probably rely not solely on regulatory reception but additionally on the power to draw institutional participation and exhibit utility at scale.
As of now, Robinhood’s submission represents some of the structured efforts by a US-regulated dealer to formalize the function of tokenized RWAs inside mainstream finance.
