Robinhood Markets Inc. is reportedly exploring a blockchain platform to enable European investors to trade tokenized U.S. securities, according to a recent report by Bloomberg. The trading app is in discussions with blockchain networks Arbitrum (ARB) and Solana (SOL) to serve as infrastructure providers for the initiative.
While no final agreements have been reached, the move is seen as part of Robinhood’s broader strategy to incorporate digital assets and blockchain technology into its offerings. Representatives from both Robinhood and the blockchain networks have not commented on the ongoing negotiations.
Tokenized securities have gained significant traction as global financial institutions seek to streamline settlement processes and reduce costs. A report from the Global Financial Markets Association (GFMA) estimates that distributed ledger technology could cut global clearing and settlement expenses by $20 billion annually.
Strategic European Expansion and Blockchain Integration
Robinhood’s potential foray into tokenized assets comes amid its strategic expansion into Europe. In April, the firm obtained a brokerage license in Lithuania, allowing it to tap into the EU investment market and offer its services across the region.
Additionally, the company recently announced its acquisition of crypto exchange Bitstamp, a deal that could facilitate Robinhood’s entry into crypto-linked derivatives through Bitstamp’s MTF license.
By integrating tokenized assets, Robinhood would join other financial heavyweights such as BlackRock and Apollo, which have already launched blockchain-based financial products. BlackRock’s BUIDL fund, launched in 2023, has already secured over $2 billion in assets, reflecting growing investor interest in tokenized securities.
If successful, Robinhood’s venture could position it as a key player in the emerging market for tokenized financial assets, further bridging the gap between traditional finance and blockchain technology.
