Robinhood launches tokenized stock trading in Europe, covering over 200 U.S. stocks.
Digital broker Robinhood announced on Monday the launch of tokenized stock trading services in Europe, allowing users from 31 EU countries to trade over 200 U.S. stocks and ETF tokens, including well-known companies like Nvidia, Apple, and Microsoft. This service adopts a zero-commission model, providing 24/7 trading functionality five days a week, with tokens issued via the Ethereum Layer 2 network Arbitrum.
Source: Robinhood Robinhood announced the launch of tokenized stock trading services in Europe, allowing users from 31 EU countries to trade over 200 U.S. stocks and ETF tokens.
The company stated at a product launch event in Cannes, France, that this move symbolizes the transformation of Robinhood's European cryptocurrency application into a "crypto-driven one-stop investment application."
CEO Vlad Tenev stated at the event: "Tokenization will open the door to a revolution in large-scale trading." The company plans to expand the number of tradable stock tokens to "thousands" by the end of the year.
More notably, Robinhood also announced it will offer equity tokens for private companies, with the first wave launching tokens for Sam Altman's OpenAI and Elon Musk's SpaceX. Both companies are not publicly listed, and previously only insiders and ultra-high-net-worth investors had access to their equity.
Source: Robinhood Robinhood also announced it will provide equity tokens for private companies.
To celebrate the service launch, Robinhood is offering EU users who register to trade stock tokens before July 7 a €5 OpenAI and SpaceX token, with the company allocating $1 million in OpenAI tokens and $500,000 in SpaceX tokens for this promotion.
Breaking down investment barriers, allowing general investors to participate in private equity.
The significance of launching tokenized stocks is immense, especially the opening of equity in non-listed companies like OpenAI and SpaceX.
Johann Kerbrat, senior vice president and general manager of Robinhood's cryptocurrency division, stated: "We want to ensure investment opportunities are available. What we are discussing on stage is how to address the inequality between those who historically had access to such companies and others. This is the truly exciting part: now everyone can participate."
Source: Robinhood Robinhood has deployed equity tokens for OpenAI and SpaceX on its testnet.
Traditionally, private equity investment in private companies has been limited to institutional investors and high-net-worth individuals, with ordinary retail investors almost entirely excluded. Through tokenization technology, Robinhood is attempting to break this barrier, allowing more investors to share in the growth potential of non-listed star companies.
Kerbrat emphasized: "The goal of tokenization is to allow anyone to participate in this economic system."
Additionally, Robinhood has launched cryptocurrency perpetual contract trading for EU users, offering up to 3x leverage, and has introduced staking services for Ethereum and Solana in the U.S. market. The company also revealed that it is developing a proprietary Layer 2 blockchain network based on Arbitrum technology, specifically optimized for tokenized assets, expected to launch later this year or early next year.
Further reading
Will Robinhood launch its own Arbitrum L2 blockchain? Is it competing with Coinbase Base?
Targeting the tokenized asset market, challenging traditional financial boundaries.
Robinhood's major entry into the tokenized asset industry comes at a time when this market is rapidly growing. According to a report from Ripple and BCG, the tokenized asset market could grow to $18.9 trillion by 2033. Currently, the market has reached a size of $24 billion, primarily driven by private credit and U.S. treasury bonds, while tokenized stocks account for less than $400 million, indicating significant growth potential.
Tokenized stocks combine characteristics of traditional finance and cryptocurrency trading, favored by international investors for better accessibility, flexible trading hours, and lower costs.
Robinhood product head Seong Lee stated: "The company aims to eliminate the 'high costs' intermediaries face when European investors invest in U.S. assets, only charging a 0.1% foreign exchange fee."
In the face of a highly competitive market environment, major cryptocurrency exchanges including Kraken, Gemini, and Coinbase have started or planned to offer tokenized stock services. However, unlike competitors who collaborate with regulated asset tokenization experts, Robinhood chose to build its own tokenization engine. Experts believe that tokenized stocks could significantly alter the landscape of securities investment, despite the lack of a clear regulatory framework in the U.S. Motivated by this news, Robinhood's stock price (NASDAQ: HOOD) reached an all-time high, rising nearly 13% to $94.24.
Source: Google Finance Robinhood's stock price (NASDAQ: HOOD) reached an all-time high, rising nearly 13% to $94.24.
‘Buy even if not listed! Robinhood introduces on-chain U.S. stocks, allowing you to buy OpenAI token stocks’ this article was first published in ‘Crypto City’.
