Robinhood Launches An L2 Blockchain For Stock Trading In Europe

Robinhood opens a new chapter in its history by launching its own layer 2 blockchain to offer tokenized stocks to European investors. This technological push places Europe at the heart of its crypto strategy: allowing investors from the Old Continent to trade American stocks 24/7, commission-free. A breakthrough that could well reshuffle the cards of traditional trading. Analysis.

A technological revolution that propels Robinhood to new heights

Robinhood has just reached a decisive milestone in modernizing financial markets. This Monday, the platform launched its own layer 2 blockchain on Arbitrum, allowing European investors to access more than 200 American stocks and ETFs in tokenized form. An innovation that goes far beyond a mere announcement: it redefines the rules of trading.

The markets immediately welcomed this initiative. Robinhood stock climbed 11.25%, reaching an all-time high of $92.37, a 148% increase since January. This surge illustrates investors’ confidence in the disruptive strategy adopted by the company.

Thanks to its MiCA license, Robinhood can now operate in 27 European countries, providing a solid regulatory framework for its blockchain ambitions.

But the real novelty lies in how the tokenized securities work: tradable without commission, 24/7 and 5 days a week, they break down the time and financial barriers of traditional markets.

Europeans can now freely invest in American giants like Apple, Tesla, or Microsoft through a smooth, regulated Web3 interface… built for the future.

A clear global crypto strategy

Robinhood’s blockchain breakthrough did not come out of nowhere. It fits into an international expansion strategy started with the acquisition of Bitstamp for $200 million last June.

This acquisition, focused on regulated and institutional crypto markets, already announced a turn towards a more integrated and tokenized finance. The launch of its own layer 2 blockchain on Arbitrum today is the realization of that vision.

Analysts have taken note. Ed Engel at Compass Point raised his price target from $64 to $96, betting on increased revenue from margin trading.

The tokenization of stocks indeed opens a still underexploited segment, but with considerable monetization prospects.

During a demonstration, CEO Vlad Tenev conducted a live trade of tokenized OpenAI shares on Arbitrum, proving the robustness of the infrastructure. A successful operation marking the transition from theory to practice.

A booming RWA market… and competition that’s organizing

Meanwhile, Robinhood is diversifying its offer with perpetual futures contracts offering leverage up to 3x, in partnership with Bitstamp. A way to capture both small investors and more experienced traders.

This positioning aligns with the rise of the tokenized real-world assets (RWA) market, which crossed $24 billion in June, according to RedStone. Yet tokenized stocks only represent about $400 million, highlighting enormous growth potential.

But Robinhood is not alone in this race. Gemini already offers tokenized MicroStrategy shares, while Kraken is developing its xStocks service on Solana for European investors. This buzz reflects a profound change in market structure.

Faced with this dynamic, Robinhood is not just following the trend. It seeks to redefine the standards of digital trading, with a vision resolutely focused on interoperability, regulation, and global accessibility.

Tokenization is no longer a technological gamble: it is a strategic tool. For Europe and global markets, the movement is underway, and Robinhood is on the front line.