Creating a Blockchain-Driven Platform for Trading U.S. Securities in Europe

Robinhood is working on a blockchain initiative designed to give European investors the ability to access U.S. financial instruments, according to sources acquainted with the development.

The new platform is expected to explore partnerships with a digital asset firm and may utilize three different blockchain technologies: Arbitrum (ARB), Ethereum (ETH), and Solana (SOL).

Tokenization of assets is increasingly gaining traction among traditional finance entities as they delve deeper into the cryptocurrency market. Multiple firms have introduced tokenized funds recently, with predictions indicating that this market could expand to $23.4 trillion by 2033.

Tokenization involves creating a digital token representing a conventional asset on the blockchain, enhancing data security, facilitating quicker transaction settlements, and boosting liquidity, among other advantages.

Earlier in January, Robinhood CEO Vlad Tenev expressed concerns about the existing regulatory environment in the U.S., which lacks clear guidelines for the registration of security tokens. He believes these shortcomings hinder a transformative financial shift that could democratize private-market investments for everyday investors through tokenization.