Robinhood is making its most aggressive move into crypto yet, and Wall Street is paying attention. The trading app known for popularizing commission-free stock trading is now offering tokenized versions of U.S. stocks and ETFs to European users.
Tokenized Stocks Launch in Europe
The new feature, launched on June 30, allows investors to trade digital representations of more than 200 stocks, including Apple, Tesla, and the S&P 500 ETF, 24 hours a day, 7 days a week. No commissions, no middlemen.
The tokenized stocks are being issued on Arbitrum, an Ethereum scaling network, and are backed 1:1 by real shares held by a regulated custodian.
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Users can trade fractional shares and transfer them between self-custodial wallets, bringing traditional equities closer to decentralized finance infrastructure.
Robinhoodโs New Layer 2 Blockchain
But Robinhood isnโt stopping there. The company also revealed plans to build its own Layer 2 blockchain, which will support staking, crypto derivatives, and other DeFi-native tools.
The blockchain will be integrated into Robinhoodโs growing ecosystem, though no release date has been confirmed.
These developments come weeks after Robinhood completed two crypto acquisitions totaling over $400 million, signaling a broader strategic shift toward blockchain-based financial services.
The company has not commented on whether the tokenized stock service will expand beyond the EU.
HOOD Stock Soars on Crypto Expansion News
The market responded swiftly. Robinhood (HOOD) stock jumped more than 13%, hitting an all-time high of $93.63 on Monday. Investors welcomed the platformโs aggressive entry into crypto infrastructure and DeFi-adjacent services.
Tokenized securities have previously been piloted by smaller startups, but Robinhoodโs size and regulatory status are drawing new attention to the model.
The rollout makes Robinhood one of the first major U.S.-based financial companies to introduce tokenized equities for retail investors.
The decision to launch in Europe suggests the company is taking advantage of the European Unionโs recently implemented Markets in Crypto-Assets (MiCA) framework, which provides clear rules for digital asset services.
On the Flipside
- The regulatory landscape in the United States, although changing, remains uncertain, and Robinhood has not yet indicated how it plans to navigate it.
Why This Matters
Robinhoodโs move highlights the increasing overlap between traditional finance and blockchain platforms. By developing its Layer 2 network and expanding its token offerings, the company appears to be aiming to become a full-service crypto-native brokerage.
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People Also Ask:
Tokenized stocks are digital representations of real shares that can be traded on blockchain networks, backed 1:1 by actual shares held by a regulated custodian.
Yes, Robinhoodโs tokenized stocks allow trading of fractional shares and transfers between self-custodial wallets.
Robinhood has not yet disclosed plans to expand tokenized stock offerings beyond Europe, and the U.S. regulatory environment remains uncertain.
