Robinhood launches tokenized U.S. stock trading in 30 European countries

Robinhood has launched tokenized US stock trading in Europe, allowing users to trade equities round the clock from Monday through Friday. The move brings 150,000 customers across 30 countries direct blockchain access to tokenized shares that reflect the value of top American companies. The company confirmed the rollout in an interview with Bloomberg, adding that the tokens will be available 24/5 through the Arbitrum blockchain. The tokens are backed by real shares, which Robinhood owns. Customers won’t get voting rights, but they will still receive dividends and benefit from corporate actions like stock splits. These are full representations of the underlying equities, just on-chain. While traditional brokerages in Europe already offer access to US stocks, tokenized versions allow for instant settlement and greater transparency. This isn’t a cosmetic upgrade — it removes the bottlenecks that usually slow down global equity trading. Robinhood uses Arbitrum before launching its own chain The Menlo Park-based company is using Arbitrum, a Layer 2 network that runs on Ethereum, to issue the tokens. But that’s temporary. The firm is working on launching its own Layer 2 blockchain , which will eventually handle these transactions. Until then, all trades will settle on Arbitrum. Customers in the EU previously could only trade crypto through Robinhood. This is the first time they’re getting access to US stocks, not through Wall Street, but through a blockchain. This isn’t just about stocks. Robinhood also confirmed plans to launch perpetual futures for cryptocurrencies in Europe before the end of the summer. These products let traders speculate on prices without expiry dates. It’s part of a larger plan to expand the company’s crypto-based offerings for its European base. Earlier this year, Robinhood completed the acquisition of Bitstamp Ltd., one of the oldest crypto exchanges in Europe. That gave them a regulatory base and a foothold in the region. Bitstamp’s infrastructure is expected to play a role in how Robinhood pushes both crypto and equity products to a European audience. And it’s not the only company moving in this direction. Competitors and regulators watch closely as tokenization spreads Kraken, another crypto exchange, said it will soon allow international users to trade tokenized securities. Meanwhile, Galaxy Digital executives have held talks with US regulators about tokenizing shares of their own company and others. On the traditional side of finance, big players like BlackRock, Franklin Templeton, and Apollo Global Management have already issued tokenized funds. Tokenizing public equities is a bigger challenge than doing it with simpler assets like US Treasuries, which are already being issued on-chain by firms like Securitize and Ondo. The current market for tokenized Treasuries is already worth several billion dollars. McKinsey & Co. said the total market for real-world assets on blockchain could hit $2 trillion by 2030. But equities carry more complexity — things like real-time mergers, stockholder votes, and dividend distributions all have to be handled without breaking compliance. There’s still no green light in the United States for this type of product. That’s why Robinhood is testing it in Europe. The Securities and Exchange Commission hasn’t created clear rules yet, but that might be changing. Hester Peirce, who heads the SEC’s crypto task force, said in May that “sandbox structures” may allow companies to test new products without having to comply with outdated regulations. “They do not have to comply with inapt regulations, which, in many cases, were developed well before the technologies being tested existed,” Peirce said during her May 8 remarks. She believes letting firms operate under relaxed guardrails could make room for innovation. This push is happening while the crypto industry rides a $3 trillion bull market. And with Donald Trump now back in the White House, some in the space are hopeful the regulatory mood in Washington could start to change. Peirce’s comments and recent momentum from firms like Robinhood are feeding expectations that tokenization might soon get a formal place inside US finance. KEY Difference Wire helps crypto brands break through and dominate headlines fast

Source: Cryptopolitan