Robinhood Expands Crypto Offerings in Europe with Tokenized Stocks and Derivatives

Robinhood has expanded its crypto offerings with the launch of tokenized stock trading and crypto derivatives, marking a significant step in its European market strategy. European users can now access over 200 U.S.-listed stocks and ETFs as tokens on the Arbitrum Layer-2 blockchain, providing a seamless and cost-effective trading experience. This move is part of Robinhood's broader initiative to simplify access to financial markets and lower costs for European investors.

In addition to tokenized stocks, Robinhood has introduced perpetual futures with 3x leverage for European customers. These instruments, available through Bitstamp, allow for leveraged trading without fixed expiration dates, enhancing the trading options for European users. The acquisition of Bitstamp for $200 million has provided Robinhood with the necessary exchange infrastructure and licensing to support these new offerings.

To further support tokenized real-world assets, Robinhood is developing its own Ethereum-compatible Layer-2 blockchain. This custom network will prioritize self-custody, fast settlement, and cross-chain bridging, aiming to provide a more efficient and secure infrastructure for tokenized assets. The company plans to issue tokenized stocks on this new infrastructure once it is live, offering users the ability to manage their assets through Robinhood’s wallet or app without handling private keys. Token holders will also receive dividend payouts directly on the platform, providing a unified crypto and traditional finance experience.

In the United States, Robinhood has introduced crypto staking for Ethereum and Solana holders, allowing users to earn passive income by staking assets directly through the Robinhood app. This feature expands the platform’s earning tools while keeping the experience simple and regulated. Additionally, Robinhood is offering a 1% bonus on crypto deposits for a limited time, with the potential to double that bonus to 2% if platform-wide deposits reach $500 million. The company has also teased the launch of a crypto cash-back credit card later this year, further integrating crypto into everyday financial tools.

Robinhood's strategy aims to compete directly with top crypto exchanges by combining traditional assets and Web3 tools. By building its own infrastructure, Robinhood stands out in the tokenized asset market, which is projected to grow significantly. The firm continues to secure licenses across Europe under the MiCA framework, expanding its reach to over 30 countries. Robinhood has also introduced AI tools, like Cortex, to assist users in analyzing markets and trends, further enhancing its long-term strategy of making crypto accessible while integrating it with everyday financial tools.