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Robinhood Bets Big on Blockchain—Plans Tokenized U.S. Stocks for EU Traders

Robinhood Bets Big on Blockchain—Plans Tokenized U.S. Stocks for EU Traders

Author:
Coingape
Published:
2025-05-07 22:58:38
20
2

Robinhood is diving headfirst into crypto infrastructure with plans to build a blockchain-based tokenization platform. The move would let EU investors trade U.S. equities as digital tokens—because apparently, traditional brokerage accounts are too 20th century.

The zero-commission pioneer aims to bypass legacy settlement systems by leveraging distributed ledger tech. If successful, it could democratize cross-border investing—or just add another layer of abstraction to an already convoluted financial system. Either way, Wall Street won’t be thrilled.

One cynical take? This reeks of a Hail Mary play after the GameStop fiasco and crypto winter battered its reputation. But hey—when in doubt, blockchain it out.

robinhood

  • Robinhood’s Q1 earnings report showed that the company is heavily reliant on crypto trading, despite a drop in QoQ trading volume.
  • The trading platform is likely to tap into Solana (SOL) and Arbitrum (ARB) chains for its planned development.

Robinhood Markets, Inc. (NASDAQ: HOOD), an established electronic trading platform, is ostensibly planning to develop a blockchain tokenization platform to enable European retail investors to participate in the United States securities market. Reportedly, Robinhood plans to collaborate with Arbitrum (ARB) and Solana (SOL) networks to enable the tokenization of U.S. securities.

Currently, Robinhood provides cryptocurrency trading services to several EU countries and stock trading services to retail investors in the United Kingdom. Once finalized, the new tokenization platform by Robinhood will help democratize the mainstream adoption of U.S. securities via the blockchain technology.

Robinhood Taps Blockchain to Remain Profitable 

In the recently released first-quarter earnings report, Robinhood noted that crypto trading remained a significant contributor to its overall revenue. During the first three months of 2025, Robinhood reported a revenue of about $252 million from crypto trading services.

However, Robinhood highlighted that its crypto trading services dropped by 35 percent from the fourth quarter of 2024.

As a result, the trading platform is compelled to diversify its products to ensure a sustainable revenue source for its shareholders. The company has laid significant emphasis on blockchain technology to ensure transparency and seamless adoption of its services globally.

Last month, Robinhood secured a brokerage license in Lithuania, which will play a crucial role in its entry into the EU market, particularly in the tokenization and trading of U.S. stock securities.

Furthermore, Robinhood acquired Bitstamp cryptocurrency exchange to enhance its legalities in more jurisdictions in the near future.

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