Robinhood Bets Big on Blockchain—Brings US Securities Trading to Europe via Crypto Rails

Wall Street’s favorite disruptor just leveled up. Robinhood is reportedly launching blockchain-based trading for US stocks in Europe—cutting through legacy finance red tape with crypto infrastructure.

Why it matters: The move could democratize access to US markets for European investors while giving traditional brokers a migraine. No more 3-day settlement waits—just near-instant settlement on-chain.

The cynical take: Because what finance really needed was more Americans exporting their speculative habits overseas. At least this time it’s backed by actual blockchain tech rather than empty promises.

Robinhood Looks to Expand EU Services with Brokerage License in Lithuania

Robinhood, which currently only offers cryptocurrency trading to its European Union customers, recently secured a brokerage license in Lithuania. This will allow the company to expand its services within the EU to include stock trading.

In addition, Robinhood is in the process of closing a deal to acquire crypto exchange Bitstamp, which would enable the company to offer crypto-linked derivatives under Bitstamp’s MiFID multilateral trading facility license.

Despite Crypto Growth, Robinhood Aims to Broaden Revenue Sources

The company has enjoyed strong financial performance, with a 50% jump in revenue for the first quarter of the year. A big chunk of this growth came from its cryptocurrency business, driven by a surge in trading volumes as investors sought to hedge against market volatility. As a result, the platform’s profits more than doubled, surpassing analysts’ expectations.

Despite its reliance on crypto for now, CEO Vlad Tenev said that Robinhood is working to diversify its business. The company plans to reduce its dependence on crypto transaction volumes over time.

“We’re focused on diversifying the business outside of crypto,” Tenev explained during the earnings call. “This will make us less reliant on crypto transaction volumes in the future.”

With its latest move, Robinhood aims to tap into the growing interest in blockchain-based financial products. The company’s European expansion, which is backed by Lithuania’s regulatory framework, could serve as a crucial stepping stone in its broader international growth strategy.

However, the platform’s success will hinge on its ability to attract a substantial user base and navigate evolving market dynamics in the EU.