Robinhood Throws Down Gauntlet: Demands SEC Clarity on Tokenized Real-World Assets
Wall Street’s favorite disruptor just fired a regulatory flare. Robinhood’s pushing the SEC to establish clear rules for tokenized RWAs—because nothing says ’democratized finance’ like begging permission from the very gatekeepers you vowed to replace.
The move comes as traditional assets increasingly collide with blockchain rails. Real estate, commodities, even private equity stakes are being digitized—while regulators scramble to keep pace.
One cynical take? This reeks of a brokerage firm hedging its bets. After riding the crypto rollercoaster for years, Robinhood’s now playing both sides—disrupting finance while cozying up to its rulemakers. How very... mature.
Robinhood Proposes Major Upgrade
Following the proposal, Robinhood introduced RRE, a new platform for trading asset-backed securities. The aim is to use an offchain agent for trade matching and settle on the blockchain, balancing fast trade processes with clear visibility.
The use of RRE would involve a dual-chain model that draws on both the solana and Base blockchains with latency lower than 10 microseconds and can handle up to 30,000 transactions every second. This advancement in technology could speed up the United States capital markets settlement cycle from taking two days to as quick as zero with a cost reduction by 30%.
Further, the RRE would comply with worldwide regulations by working with Jumio and Chainalysis for KYC and AML purposes. “RWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework,” said Robinhood CEO Vlad Tenev.
With BlackRock proposing this only a week earlier, Robinhood is proposing this during a moment when interest in tokenization from institutions is increasing. Moreover, Libre plans to place $500 million of Telegram-linked debt on the blockchain and MultiBank joined with UAE partners MAG and Mavryk to tokenize a $3 billion debt contract.
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