Robinhood has announced the launch of tokenized stocks for European Union customers, providing them the opportunity to trade over 200 U.S. stocks and exchange-traded funds.
Revolutionary Trading Approach
The tokens allow European investors to trade major U.S. companies including Nvidia, Apple and Microsoft five days a week without traditional market hour restrictions. Robinhood executives revealed plans to issue tokens linked to privately-held firms such as OpenAI and SpaceX.
The California-based trading platform partnered with blockchain firm Arbitrum to issue these tokenized securities. This move positions Robinhood to capitalize on growing global interest in U.S. stock markets, particularly as American tech giants continue benefiting from the artificial intelligence boom.
Ambitious Expansion Plans
The company plans to develop its own blockchain infrastructure, which would enable 24/7 trading compared to the current 24/5 schedule. CEO Vlad Tenev announced that the company aims to expand available stock tokens to 'thousands' by year's end.
'Tokenization is going to open the door to a massive trading revolution,' Tenev stated during the presentation. This announcement follows similar moves by competitors.
Cryptocurrency Service Expansion
Beyond stock tokens, Robinhood unveiled additional cryptocurrency offerings for different customer segments. European Union users will gain access to crypto perpetual futures, allowing leveraged bets on cryptocurrency prices without expiration dates.
U.S. customers will receive staking services, enabling them to lock cryptocurrency holdings to validate blockchain transactions in exchange for rewards. Recent clarifications from the SEC staff indicated that certain forms of staking do not constitute securities offerings, reducing prior regulatory concerns.
Robinhood's launch of tokenized stock trading marks a significant evolution in retail investing, combining traditional securities with blockchain technology to serve European customers.
