Robinhood Expands EU Crypto Offerings With Stock Tokens

Robinhood, a prominent brokerage fintech firm, has broadened its cryptocurrency offerings in the European Union by introducing stock tokens. These tokens, referred to as "Robinhood Stock Tokens," enable EU customers to gain exposure to the US stock market. The tokens provide access to over 200 US stocks and exchange-traded funds (ETFs) with zero commissions or additional spreads, and they offer full support and 24-hour access. Dividend payments will be directly received in the Robinhood app by stock token holders.

The stock tokens will initially be issued on the Ethereum layer-2 (L2) platform, Arbitrum. However, Robinhood plans to transition these tokenized stocks to its own L2 blockchain, which is based on Arbitrum. This new blockchain is designed to optimize tokenized real-world assets and support 24/7 trading, seamless bridging, and self-custody.

Robinhood's plan to expand stock token trading in Europe involves broadening the range from 200 to thousands of US stocks. CEO Vlad Tenev unveiled the initiative, emphasizing Robinhood's commitment to democratizing access to financial markets. This move aligns with Robinhood's broader vision to integrate cryptocurrency into daily financial operations. By the end of 2025, users in the European Union can expect to see a wider array of tokenized stock options available on the platform.

Immediate changes include extending tokenized trading, with dividends payable directly within the Robinhood app. The move promises 24/5 trading on Arbitrum initially, ultimately transitioning to Robinhood’s Layer 2, supporting 24/7 trading activities. Market analysts suggest this expansion could lead to increased crypto adoption, providing a more accessible entry point for retail investors. Key reactions came from Robinhood leadership. CEO Tenev remarked, "[W]ith tokenized stocks, our European app transitions from being a crypto-only app to an all-in-one investment app powered by crypto."

These developments underscore Robinhood’s strategic pivot to blockchain-based financial services. Industry experts predict significant industry disruption, with increased retail access potentially prompting similar moves by competitors. Moreover, the initiative could stimulate blockchain technology innovation, as platforms aim for seamless integration within legacy financial systems.

Robinhood's expansion into cryptocurrency trading began in 2018, and since then, the firm’s footprint in the sector has greatly expanded. The company has strengthened its crypto offerings through strategic acquisitions, including the purchase of WonderFi—a company that operates regulated crypto trading platforms—for $179 million. Johann Kerbrat, general manager and SVP of Robinhood Crypto, emphasized the company's goal of making crypto accessible to everyone by integrating powerful tools into one intuitive platform.

This move by Robinhood marks a significant development for the cryptocurrency sector, as it transitions its European app from a crypto-only platform to an all-in-one investment app powered by crypto. The introduction of stock tokens and the new L2 blockchain demonstrates Robinhood’s commitment to innovation and its efforts to provide a seamless and comprehensive investment experience for its users.