Digital brokerage Robinhood (HOOD) is extending its crypto footprint with a slate of latest choices, together with growing its personal blockchain community based mostly on Arbitrum
and launching tokenized shares buying and selling, the corporate introduced on Monday.
The agency at present 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 property. The upcoming chain, based mostly on the Arbitrum tech stack, is aimed to assist 24/7 buying and selling, self-custody and cross-chain bridging of tokenized property. A launch date has not been disclosed, however individuals acquainted with the matter stated it may go stay round later this yr, early subsequent yr.
“Our cinematic works choices lay the groundwork for crypto to turn out to be the spine of the worldwide monetary system,” Robinhood Chairman and CEO Vlad Tenev, stated in a press release.
Robinhood’s push into tokenized property comes as competitors with digital asset exchanges is heating as much as provide a unified buying and selling hub for all types of economic devices. Asset tokenization is a read-hot sector that goals to deliver real-world property 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 may develop to $18.9 trillion by 2033, a report by Ripple and BCG projected.
A slew of well-liked crypto exchanges, together with Bybit, Kraken and Gemini have only recently began to supply tokenized shares to customers, whereas Coinbase reportedly additionally seeks regulatory approval to take action.
Robinhood’s Tenev earlier this yr additionally touted asset tokenization as a approach to develop investor entry that property which can be restricted to the rich, and advocated for clear U.S. rules 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, advised 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 well-liked spinoff instrument amongst crypto merchants, for European customers. Trades are routed by Bitstamp, one of many world’s longest-running energetic crypto trade which Robinhood acquired for $200 million.
The agency has additionally launched crypto staking for U.S.-based buyers beginning with Ethereum’s ether
and Solana’s SOL that lets token holders earn rewards with out leaving the appliance.
Moreover, Robinhood will add crypto rewards to its bank card providing later this fall, permitting U.S. clients to speculate cashback mechanically in digital property.
Learn extra: Robinhood Launches Micro Bitcoin, Solana and XRP Futures Contracts