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Robinhood Develops Blockchain Platform for European US Securities Trading

Blockchain

Business Honor
12 May, 2025

Robinhood is building a blockchain platform to enable European investors to trade tokenized US securities.

Robinhood Markets Inc. will soon be adding to its product by creating a blockchain platform that will allow retail investors in Europe to trade US securities, such as stocks. The endeavor is still in the development stage and will be launched together with a digital-asset company, although the terms of the partnership have not been concluded.

The blockchain platforms in question for this project are Arbitrum, a blockchain based on Ethereum, and Solana, another popular blockchain. These have been chosen because they are efficient and accommodate tokenized assets, which Robinhood intends to introduce to its trading platform.

Tokenized securities are computerized copies of conventional financial instruments such as stocks, bonds, and commodities. Using blockchain technology, the assets become easier to trade, minimizing the cost linked with traditional trading methods. This is a significant step for world financial markets, in which tokenization can make trading more efficient and transparent. A Global Financial Markets Association report has estimated that distributed ledger technology (DLT), the underpinning of blockchain, can bring down clearing and settlement charges globally to as much as $20 billion every year.

Robinhood, which currently has cryptocurrency trading services for customers within the European Union, has just obtained a brokerage license in Lithuania. This will enable the company to provide more conventional investment services, like the trading of stock, across the European block. The expansion is part of Robinhood's general effort to get digital assets accepted into the traditional financial system and provide tokenized securities to global investors.

Robinhood's move to tokenize US securities is part of a larger trend among large financial institutions to adopt blockchain technology. Already, institutions such as BlackRock, Franklin Templeton, and Apollo have introduced tokenized funds, a major departure from the way financial assets might be traded in the future.

As blockchain continues to transform the financial sector, Robinhood's foray into tokenized securities may open the door to more efficient and accessible global investing.