Robinhood Launches 24/5 U.S. Stock Trading in Europe via Blockchain

Robinhood has expanded its services to Europe by launching tokenized U.S. stock trading in 30 countries across the region. This move allows users to trade equities around the clock from Monday through Friday, providing a new level of accessibility and convenience for investors. The company has confirmed that the tokens will be available 24/5 through the Arbitrum blockchain, a Layer 2 network that runs on Ethereum. These tokens are backed by real shares owned by Robinhood, ensuring that customers receive dividends and benefit from corporate actions such as stock splits, although they will not have voting rights.

This initiative brings 150,000 customers direct blockchain access to tokenized shares that reflect the value of top American companies. Unlike traditional brokerages, tokenized versions of these stocks offer instant settlement and greater transparency, eliminating the bottlenecks that typically slow down global equity trading. This innovation is part of Robinhood's broader strategy to expand its crypto-based offerings in Europe, following the acquisition of Bitstamp Ltd., one of the oldest crypto exchanges in the region. Bitstamp's infrastructure is expected to play a crucial role in how Robinhood pushes both crypto and equity products to a European audience.

Robinhood's use of Arbitrum is a temporary measure as the company works on launching its own Layer 2 blockchain to handle these transactions. Until then, all trades will settle on Arbitrum. This move is significant because it marks the first time European customers can access U.S. stocks through a blockchain, rather than traditional financial channels. Additionally, Robinhood has plans to launch perpetual futures for cryptocurrencies in Europe before the end of the summer, further expanding its crypto-based offerings.

The tokenization of public equities presents a more complex challenge compared to simpler assets like U.S. Treasuries, which are already being issued on-chain by firms. Equities involve real-time mergers, stockholder votes, and dividend distributions, all of which must be handled without breaking compliance. Despite these challenges, the potential market for real-world assets on blockchain is significant, with some analysts forecasting it could reach $2 trillion by 2030. This push is happening amidst a $3 trillion bull market in the crypto industry, and there is growing optimism that tokenization could soon gain a formal place within U.S. finance.

Competitors and regulators are closely watching as tokenization spreads. Other companies, such as Kraken and Galaxy Digital, are also exploring tokenized securities. On the traditional side of finance, major players like BlackRock, Franklin Templeton, and Apollo Global Management have already issued tokenized funds. The Securities and Exchange Commission has not yet created clear rules for this type of product in the United States, but there is hope that regulatory structures may evolve to accommodate innovation. Hester Peirce, who heads the SEC’s crypto task force, has suggested that "sandbox structures" could allow companies to test new products without having to comply with outdated regulations, potentially paving the way for broader adoption of tokenized assets.