XRP News Today: Robinhood Launches Layer-2 Blockchain for European Stock Trading

Robinhood, the digital brokerage, has expanded its offerings into real-world assets (RWAs) by launching a tokenization-focused layer-2 blockchain. This new network, built on Arbitrum, will enable the issuance of over 200 US stock and exchange-traded fund (ETF) tokens, providing European investors with access to US assets. The announcement was made on Monday, marking a significant step in Robinhood's strategy to integrate blockchain technology into traditional financial markets.

Robinhood's stock tokens will be available for trading 24 hours a day, five days a week, with zero commissions. This move is part of Robinhood's broader push into the European market, where it aims to offer a more accessible and efficient trading experience for investors. The new layer-2 blockchain will facilitate the tokenization of stocks and ETFs, allowing for seamless and secure transactions on the blockchain.

In addition to the launch of the layer-2 blockchain, Robinhood has also introduced perpetual futures in the EU. These derivatives will offer eligible traders access to leverage of up to three times, with trades being routed through Bitstamp, the crypto exchange recently acquired by Robinhood for $200 million. This acquisition is part of Robinhood's strategy to expand its crypto offerings and provide a more comprehensive trading platform for its users.

Robinhood's entry into the tokenized stock market is not unprecedented. Other exchanges, such as Gemini, have already begun offering tokenized versions of stocks, providing investors with exposure to companies like Strategy (MSTR). However, Robinhood's move to launch a layer-2 blockchain for stock trading in Europe is a significant development, as it aims to provide a more efficient and secure trading experience for investors.

Robinhood's push into the crypto and tokenization space has been gaining momentum in recent months. The company unveiled its new tokenization initiative days after launching micro futures contracts for Bitcoin (BTC), XRP (XRP), and Solana (SOL). These contracts allow traders to access derivatives markets with significantly lower capital requirements, making it easier for retail investors to participate in the crypto market.

In May, Robinhood acquired Canadian crypto operator WonderFi in a $179 million deal, further expanding its crypto offerings. The company has also been advocating for sensible tokenization legislation in the United States, having submitted a proposal to the Securities and Exchange Commission to establish a national framework for RWAs. Robinhood's proposal includes plans to launch the Real World Asset Exchange, a platform designed for offchain trading with onchain settlement.

The RWA market has grown significantly over the past year, with tokenized stocks accounting for less than $400 million of the total value. However, much of its growth has been driven by private credit and US Treasury debt. Robinhood's entry into the tokenized stock market is expected to further drive growth in this sector, as it aims to provide a more accessible and efficient trading experience for investors.