Robinhood (HOOD) Update: Creating a Blockchain Platform for Trading U.S. Securities in Europe

Robinhood is developing a blockchain-based program to allow traders in Europe to access U.S. financial assets, according to sources familiar with the matter. Three blockchains, including Arbitrum (ARB), Ethereum (ETH), and Solana (SOL), are reportedly being considered for the new platform, which will be in collaboration with a digital asset firm.

Tokenized assets have emerged as a key area for traditional financial firms looking to expand into crypto. Several companies have previously launched tokenized funds, with some analysts predicting the market will reach $23.4 trillion by 2033. Tokenization refers to the process of creating a digital token for a traditional asset on the blockchain, enhancing data security, enabling faster transaction settlement, and increasing liquidity, among other benefits.

In January, Robinhood CEO Vlad Tenev criticized current U.S. regulations for lacking a clear framework and rules for registering security tokens. He argued that these constraints hinder a potential financial shift that could democratize private-market investments for everyday investors through tokenization.