Robinhood Launches Tokenized Trading for 200 U.S. Stocks, Stock Surges 13%

On June 30, 2025, Robinhood made a significant announcement at an event in Cannes, France, launching tokenized trading for over 200 U.S. stocks and ETFs for EU users. This move included private equity in unlisted companies such as OpenAI and SpaceX, sparking a 13% surge in Robinhood’s stock price and generating global excitement about tokenized stocks in financial markets.

Tokenized stocks represent a new era in traditional finance, offering 24/7 trading, fractional ownership, and fast settlement. This democratizes access to traditional and private assets through blockchain technology, breaking down financial barriers and blending traditional finance (TradFi) with decentralized finance (DeFi).

Stock tokenization involves converting traditional stocks or equity into digital tokens on a blockchain, where each token represents a portion of ownership in the underlying asset. These tokens are issued and traded via smart contracts, maintaining economic benefits like price changes and dividends, but typically not voting rights. This process uses blockchain’s distributed ledger for transparency and security, cutting intermediary costs and speeding up settlement times. Robinhood’s service runs on Arbitrum, an Ethereum Layer-2 network, with plans to transition to its own blockchain by late 2025 or early 2026.

Robinhood’s service includes major U.S. companies like Apple, Microsoft, and Nvidia, as well as tokenized equity in unlisted firms like OpenAI and SpaceX. This is particularly notable in the EU, where looser regulations allow non-accredited investors to trade private equity, unlike the U.S., where strict rules apply. However, OpenAI stated it did not partner with Robinhood and does not endorse its tokenization, highlighting legal and compliance challenges. Despite this, Robinhood’s move is seen as a milestone, suggesting tokenized stocks could be the next big financial tool after ETFs.

Tokenized stocks revolutionize the investment experience by lowering barriers to entry. By splitting stocks into smaller tokens, everyday investors can afford high-value assets, making markets more inclusive. This appeals to young investors and those in emerging markets. EU users can now invest in U.S. stocks and private companies at low cost through Robinhood. Tokenization also boosts trading efficiency, enabling near-instant settlements and 24/7 trading, unlike traditional markets with fixed hours. Blockchain’s transparency and security add value, making transactions verifiable and reducing fraud risks. Smart contracts automate trades, increasing reliability and delivering dividends directly to users.

Despite its promise, stock tokenization faces hurdles. Regulation is the biggest issue, as tokenized stocks are securities and must follow financial laws. The EU’s MiCA framework supports Robinhood’s service, but U.S. regulations are stricter, limiting similar offerings. OpenAI’s opposition shows the legal risks of tokenizing private equity without permission, which could lead to disputes or invalid assets. Platforms must balance innovation with compliance, which may raise costs and slow growth. Technical risks are another concern, as blockchain security and stability are critical. Past hacks and smart contract flaws show the potential for losses. Robinhood’s shift to its own blockchain will face integration challenges, and balancing blockchain’s transparency with privacy needs is also tricky. Market acceptance is a challenge too, as many traditional investors are unfamiliar with or distrust blockchain. Tokenized stocks often lack voting rights, which may deter institutional investors who value governance. Traditional markets’ familiarity keeps some investors hesitant, and tokenization needs time to build trust.

Tokenized stocks have huge potential. Industry forecasts predict the tokenized real-world asset (RWA) market could reach $16 trillion by 2030, with stocks as a key part. Robinhood’s CEO, Vlad Tenev, called tokenization a “massive trading revolution,” making assets more accessible via blockchain. This vision is taking shape globally, with Hong Kong’s securities regulator supporting tokenized investment products, and Taiwan’s stock exchange exploring RWA tokenization. These moves signal growing legitimacy. Competition and collaboration are driving progress, with Coinbase seeking SEC approval for tokenized stocks in the U.S., while Kraken launched xStocks on Solana. Traditional firms like JPMorgan and Société Générale are testing tokenized assets on private blockchains. These efforts standardize technology and boost blockchain ecosystems. Robinhood’s work with Arbitrum shows cross-chain potential, and future multichain integration could enhance flexibility. Robinhood’s vision stands out, offering crypto futures and Ethereum/Solana staking, aiming for a platform blending traditional and crypto assets. Its $2 billion acquisition of Bitstamp strengthens its crypto capabilities. Robinhood’s planned Layer-2 blockchain will support more tokenized assets, like international stocks, private equity, and bonds, giving it a first-mover edge.

Robinhood’s tokenized stock service marks a turning point for traditional finance and blockchain. By tokenizing U.S. stocks and private equity, it offers EU investors low-cost, efficient access while setting a standard for digital financial markets. Despite regulatory, technical, and acceptance challenges, tokenized stocks’ liquidity, 24/7 trading, and transparency make them a rising star. Looking ahead, maturing blockchain tech and clearer regulations could break down financial barriers, offering fairer investment opportunities. Robinhood’s leadership and blockchain partnerships fuel this trend. OpenAI’s objections highlight compliance challenges, but the industry must balance innovation and regulation for sustainable growth. The tokenized stock wave is here, and Robinhood’s move is just the start. At the intersection of blockchain and finance, a more open, efficient capital market is emerging. How will tokenization reshape global finance in the next decade? Robinhood’s blockchain blueprint may hold the first clues.