Robinhood Pivoting To RWA: Plans To Offer Tokenized US Securities In Europe

Investment platform Robinhood is reportedly developing a blockchain-based platform aimed at enabling European investors to trade tokenized US securities.

The move into the real-world asset (RWA) sector highlights the firm’s ongoing strategy of utilizing blockchain technology to streamline cross-border investing.

(SOURCE)

Robinhood’s Recent Brokerage Licence Acquisition In Lithuania A Boost To Its European Expansion Plans

On April 8, Robinhood announced its acquisition of a brokerage licence in Lithuania, giving the firm a base of operations to offer its services throughout the European Union.

Its plans for an RWA platform was likely contingent on the regulatory approval from Lithuania and once launched, it will allow users across Europe to gain exposure to US equities in tokenized form.

This move from Robinhood follows its goal of leveraging blockchain technology to improve financial access across borders. By using blockchain technology, the investment firm are looking to remove the persistent issues with cross-border trading while simultaneously attracting a fresh wave of retail investors from markets traditionally underserved by US-based financial offerings.

Reportedlt, Robinhood are exploring networks such as Ethereum, Solana and Arbitrum for its upcoming RWA platform. Solana and Arbitrum known for their scalability and low transaction fees, while Ethereum offers a wide-ranging developer ecosystem and the stability of its longstanding infrastructure.

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Whichever network Robinhood ultimately go with, it will provide the infrastructure for its tokenization of US stocks, whereby shares are represented as digital tokens that can be traded in a decentralized environment.

The rise in tokenized assets is due to its numerous advantages over traditional financial instruments. These include near-instant settlement, 24/7 market access, and improved transparency via the openness of the blockchain.

This is a sentiment echoed by the likes of Larry Fink, CEO of the worlds largest asset manager, BlackRock. In a recent annual letter to shareholders, Fink stated that ‘Every asset can be tokenized’, adding that it will be a ‘revolution’ for investing.

He echoed the sentiment shared by Robinhood and others in saying that 24/7 access to the markets and near-instant settlement as two reasons why he is so bullish on the RWA sector.

Fink has skin in the game, with BlackRock having a tokenized fund, with the ticker ‘BUIDL’. The fund is valued at over $2.8 billion, marking it the largest of its kind to date.

For European investors, the launch of Robinhoods tokenized asset platform would mean faster and more cost-effective access to high-demand US equities such as those listed on the NASDAQ and NYSE.

The BUIDL fund by BlackRock has surpassed $2.3B in supply, just a month after crossing the $1B mark pic.twitter.com/th8RuP1n47

— unfolded. (@cryptounfolded) April 24, 2025

Robinhood Joins BlackRock And JPMorgan With Its Move Into The Tokenized Asset Space

Industry analysts say that Robinhood’s move comes amid a broader push by fintech companies to integrate blockchain technology into traditional finance.

The two worlds, often referred to as ‘TradFi’ (traditional finance) and ‘DeFi’ (decentralized finance), is seen as a potential catalyst for innovation in the traditional capital market space.

While Robinhood has not officially announced the blockchain platform, rumors allude to the project already being in early development stages. Details regarding a potential launch date, token standards, and whether fractionalized shares will be supported remain unclear.

RWA TOKENIZATION IS BEING CALLED THE “NEXT ETF”

BLACKROCK, JPMORGAN, AND FRANKLIN TEMPLETON ARE ALL IN

THE STAGE IS SET FOR MASSIVE GROWTH

TIME TO GET IN BEFORE IT’S TOO LATE!

— Real World Asset Watchlist (@RWAwatchlist_) May 6, 2025

The timing of this rumored initiative from Robinhood reflects growing momentum in the RWA sector. Several TradFi institutions, including BlackRock and JPMorgan, have recently launched or explored tokenized asset offerings, highlighting increased institutional interest in blockchain infrastructure.

If successful, Robinhood’s platform could set a precedent for how retail brokerage firms approach global expansion and technological adoption. It may also pave the way for a broader transformation of how securities are issued, traded, and settled across jurisdictions.

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