Robinhood Markets LLC has plans to expand its European presence by offering tokenized US securities to users in the region.
California-based crypto exchange Robinhood entered Europe in 2023, offering users access to buy and sell digital assets on its trading platform. Since then, it has made efforts to expand its reach in the region through recent strategic partnerships.
Still, Robinhood seems poised to bring more crypto-related actions to its European users. A recent Bloomberg report reveals that the exchange plans to bring asset tokenization to its users in the province.
Robinhood to Offer Tokenized US Assets
The report, citing people familiar with the development, confirmed that Robinhood is building a distributed ledger-based platform that brings US assets to European customers. The proposed protocol will allow retail users to trade tokenized US securities such as stocks and bonds.
Meanwhile, the plans are still in their earlier stages, with Robinhood yet to decide on a digital asset firm to partner with for the rollout.
Per the report, the exchange considers layer 2 platform Arbitrum and the Solana network probable destinations for its European tokenization push. Notably, discussions are ongoing, with neither party having confirmed the development.
Robinhood’s CEO, Vlad Tenev, first teased the idea in a March podcast with Bankless. He emphasized that it is easier to access short-lived, hype-based assets like meme coins but tedious to buy private companies like SpaceX and OpenAI, a narrative the exchange looks to change with its imminent asset tokenization venture.
Moreover, Robinhood plans to offer this product in Europe in a regulatory-compliant manner. It has done this with ongoing plans to acquire MiCA-compliant crypto exchange Bitstamp. The acquisition would see Robinhood operate freely in the region without regulatory hurdles.
The exchange also announced in April that it has secured a brokerage license from the Central Bank of Lithuania. Notably, the charter authorizes Robinhood to offer investment services to all 27 European Union (EU) countries.
Big Players Delving into Tokenization
Asset tokenization involves bringing real-world assets on-chain, integrating traditional finance with blockchain technology. Notably, a recent report from prominent financial technology firm Ripple tipped the sector to grow to $18 trillion by 2033.
Interestingly, major players already have a skin dip in the emerging sector. Prominent market participants like BlackRock and Franklin Templeton have launched RWA tokenization platforms on the Ethereum and Solana networks. Ripple is also making inroads in the promising technology, touted to save around $20 billion annually in global clearing and settlement costs.
Aside from Robinhood, firms like Goldman Sachs and Taurus are also looking to expand their offerings to include asset tokenization.
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