Robinhood Markets Inc. is in talks to create a blockchain platform for trading tokenized securities for European investors. This initiative may involve collaboration with blockchain companies.
Robinhood's Plans for a Blockchain Platform
American financial services company Robinhood Markets Inc. is reportedly discussing the possibility of creating a blockchain-based platform for trading tokenized U.S. securities. According to a report from Bloomberg, the discussions include a potential collaboration with digital-asset companies like Arbitrium and Solana for blockchain infrastructure options. No deals have been signed yet, and both parties have not commented on the situation.
Reducing Settlement Costs
The Global Financial Markets Association reports that distributed ledger technology could potentially save around $20 billion in global clearing and settlement costs annually. Robinhood has begun laying the groundwork for wider financial services in Europe by obtaining a brokerage license in Lithuania.
State of the Tokenized Asset Industry
Robinhood is also planning to acquire the cryptocurrency exchange Bitstamp, which will allow the company to expand its offerings related to crypto derivatives. In exploring tokenized assets, Robinhood joins prominent institutions like BlackRock, Franklin Templeton, and Apollo. For instance, BlackRock's tokenized fund BUIDL has accumulated around $2 billion since its introduction in 2023.
Robinhood's initiative to create a blockchain platform could reshape the landscape of financial services in Europe by offering new opportunities for investors and reducing costs associated with securities transactions.
