Robinhood’s Tokenized Stocks Spark EU Frenzy

Robinhood’s recent move into tokenized stocks is already creating buzz in Europe. Only a week after launching its blockchain-based trading service in the EU, CEO Vlad Tenev says private companies are lining up to join. These firms want to offer blockchain-based versions of their shares, aiming to reach everyday investors in a new way. Tenev described the reaction as a “flood” of interest , with companies seeing blockchain as a gateway to wider capital markets. The platform now offers over 200 tokenized U.S. stocks , along with promotional tokens for well-known private companies like SpaceX and OpenAI. These promotional tokens aren’t tradable yet, but they hint at Robinhood’s bigger vision. The company wants to bring thousands of private firms onto the platform, especially as many startups are choosing to stay private longer. Tenev sees this as a way to improve capital access for smaller investors. Still, the project has caught the eye of regulators. Lithuania’s central bank has asked Robinhood to explain how the tokens work. The company says it’s ready to cooperate and believes the platform meets EU regulatory standards. The tokens are considered both MiCA and MiFID compliant and are backed by actual U.S. stocks held by brokers. Robinhood hasn’t rolled out the platform in the U.S. or U.K. yet but is already in talks with regulators. Tenev is confident that current U.S. laws are flexible enough and pointed out that even the SEC is now exploring tokenized assets. This launch comes as more institutions look to blockchain for financial innovation. BioSig Technologies just raised $1.1 billion to tokenize commodities, and Dubai’s QCD fund became the first of its kind in its region to get approval. With rising interest from both companies and regulators, Robinhood is placing itself at the heart of the shift toward turning traditional shares into blockchain-based assets.

Source: Coinpaprika