Robinhood has officially launched tokenized versions of over 200 US-listed equities and exchange-traded funds (ETFs) for its customers across the European Union. This significant expansion, announced during a keynote event in France, allows for 24-hour, five-day-a-week trading of these tokens, which include exposure to major companies like Apple, Nvidia, and Microsoft. A representative from Robinhood also revealed plans to extend this offering to include stock tokens tied to privately held firms, starting with OpenAI and SpaceX, issued in partnership with blockchain infrastructure provider Arbitrum.
Tokenized Equities Debut in the EU
Robinhood’s new offering brings tokenized versions of over 200 US-listed equities and ETFs to its European Union customers. These tokens provide exposure to major companies such as Apple, Nvidia, and Microsoft, and are available for trading 24 hours a day, five days a week. This initiative combines elements of traditional finance with blockchain-based trading, aiming to attract international investors with extended trading hours and potentially lower transaction costs.
Plans for Private Company Stock Tokens
Beyond publicly listed equities, Robinhood has ambitious plans to extend its tokenized offering to include shares of privately held firms. The company intends to begin with high-profile entities like OpenAI and SpaceX. These private company stock tokens will be issued through a strategic partnership with blockchain infrastructure provider Arbitrum, signaling a move towards democratizing access to a wider range of investment opportunities.
New Crypto Derivatives and Staking Services
In addition to its tokenized equity offering, Robinhood is rolling out new cryptocurrency-related products for its EU customers. These include perpetual futures, which allow traders to take leveraged positions on crypto prices without an expiration date. For its US-based users, Robinhood is introducing staking options, enabling them to contribute crypto assets to blockchain networks in exchange for rewards, a practice that has recently gained clearer regulatory guidance from the SEC.
Proprietary Blockchain for 24/7 Trading
Robinhood officials have also disclosed plans to develop a proprietary blockchain. The primary aim of this development is to extend token trading hours from the current 24/5 model to full 24/7 access, providing continuous trading opportunities for investors. The company anticipates significantly increasing the number of available stock tokens to several thousand by the end of the year, further expanding its digital asset portfolio.
Responding to Global Investment Trends
This strategic expansion by Robinhood comes amidst a growing international interest in gaining exposure to US equities, particularly in technology companies at the forefront of artificial intelligence advancements. Other companies in the sector are making similar moves; for example, crypto exchange Kraken recently introduced its own equity-linked tokens for non-US users, indicating a broader industry trend towards bridging traditional and digital asset markets.
