Robinhood Plans European Platform for Tokenized US Securities

Robinhood is developing a platform to enable European retail investors to trade tokenized US securities. The financial services company is considering both Arbitrum and Solana as potential blockchain layers for this initiative. The project aims to tokenize US equities, allowing them to be represented on a public blockchain and traded by European users. This approach could offer benefits such as near-instant settlement, reduced costs, and improved transparency throughout the trading process.

The choice between Arbitrum and Solana would significantly influence the network's characteristics, including throughput, fees, smart contract capabilities, and compatibility with the Ethereum Virtual Machine (EVM). Arbitrum, a layer-2 scaling solution for Ethereum, is known for its compatibility with Ethereum's ecosystem, while Solana is recognized for its high throughput and low transaction costs. Both blockchains have their unique advantages that could cater to different aspects of the trading platform.

Robinhood's interest in tokenized securities is not new. In February, CEO Vlad Tenev expressed support for tokenized private company stocks, stating that they resonate well with US investors. By developing a blockchain-based framework for cross-border securities trading, Robinhood is positioning itself to compete in a segment that merges traditional equities with digital asset infrastructure. This move could potentially bridge the gap between traditional finance and the burgeoning world of digital assets, offering a more integrated and efficient trading experience for European investors.

The project is still in its early stages, with ongoing discussions and no final decisions made regarding the technology partner or launch timeline. A spokesperson for Robinhood declined to comment on the matter, and representatives from Offchain Labs, the developer of Arbitrum, and the Solana Foundation also did not respond to inquiries. However, the potential benefits of such a platform are clear, and Robinhood's entry into this space could have significant implications for the future of securities trading in Europe.

In April, Robinhood obtained a brokerage license in Lithuania, authorizing it to offer stock trading and investment services across the European Union. The company also signed an agreement to acquire crypto exchange Bitstamp, a deal still pending finalization. The acquisition would give Robinhood access to Bitstamp’s MiFID-licensed multilateral trading facility, opening the door to crypto-linked derivatives in the region. This strategic move further solidifies Robinhood's commitment to expanding its services in Europe and leveraging blockchain technology to enhance its offerings.

Regulatory clarity in the EU is also driving the company’s exploration of tokenization options. The European Union has taken a leading role in crypto banking regulation, in contrast to the more cautious approach from US authorities. The tokenization plan comes after Robinhood reported strong financial results in the first quarter of 2025, exceeding estimates. If launched, Robinhood’s platform would offer US stocks to a new segment of investors, representing a major step in the convergence between traditional finance and cryptocurrencies. The platform would enable 24/7 trading and potentially deeper market liquidity under the EU’s Markets in Crypto-Assets (MiCA) regulation.

Both Solana and Arbitrum stand to benefit from Robinhood’s choice, as either blockchain would see increased transaction volumes and user activity. Solana has recently attracted institutional interest, with BlackRock using the blockchain for its BUIDL money market fund. Robinhood's platform would enable 24/7 trading and potentially deeper market liquidity under the EU’s Markets in Crypto-Assets (MiCA) regulation. This initiative aims to streamline the trading process and expand Robinhood's offerings in the European market beyond cryptocurrency trading.