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Robinhood tokenizes nearly 500 US stocks on Arbitrum for its European clients

10h05 ▪ 5 min read ▪ by Mikaia A.
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While the bridges between traditional finance and decentralized finance are multiplying, some players no longer wait for green lights. Robinhood, a pioneer of retail trading, is tackling a new frontier: the massive tokenization of financial assets. Its goal? To offer European investors smooth, fractional, and continuous access to US markets. An initiative that, beyond the technical aspect, questions the future of digital capitalism.

Robinhood, like a modern archer, shoots luminous arrows toward Wall Street, symbolizing the tokenization of US stocks for Europe.

In brief

  • Robinhood has tokenized nearly 500 US assets on the Arbitrum blockchain for Europe.
  • These tokens are blockchain derivatives, not stocks, and regulated under MiFID II.
  • The operation attracts young crypto investors seeking fractional stocks, 24/7.
  • European regulators, including Lithuania, request more clarity on this ambitious crypto initiative.

Arbitrum and TradFi: stocks on the blockchain without owning stocks

Since June, Robinhood has crossed a major milestone with the launch of a layer 2 blockchain dedicated to stock trading in Europe. It then deployed nearly 500 tokens on the Arbitrum blockchain. These assets represent American stocks and ETFs, but not in the classic sense: they are not stocks held by users, but digital derivatives, structured under the European MiFID II directive.

Tom Wan, an analyst, summed up the situation in a tweet dated October 17: “Robinhood has deployed 80 new tokens on @arbitrum over the past few days, meaning European Robinhood users now have access to a broader range of American stocks, securities, and ETFs through tokenization“.

The promise is triple: 24/7 availability, minimal fees (0.1% exchange rate), and an entry ticket starting at 1 euro. The blockchain acts here as a relay, but not as a guarantee of ownership. Enough to intrigue or attract a crypto audience in search of hybrid opportunities.

Crypto and regulation: Robinhood at the crossroads of European ambitions

While some crypto players hesitate in the face of regulation, Robinhood bets on clarity. Relying on the MiFID II framework in Europe, the firm turns constraints into a strategic lever. In July, the Lithuanian regulator demanded clarifications about the structure of these tokens. Vlad Tenev, CEO of Robinhood, responded confidently

Tokenization is like a freight train. Nothing can stop it, and it will eventually engulf the entire financial system.

The strategy seems to be paying off. Since the launch, more than 19.3 million dollars worth of assets have been minted, with 11.5 million already burned, a sign of an active secondary market. This movement fits into a larger dynamic, where crypto transforms into a tool for access, investment… and trading.

When Robinhood dreams of a Wall Street on Arbitrum

Robinhood is not content to just tokenize. At the same time, it is developing a broader crypto ecosystem. After acquiring WonderFi for 179 million dollars in May, it launched micro futures contracts on Bitcoin, XRP, and Solana. Some commentators already see a deeper convergence.

On X, a user summarized the market intuition: “They are in some way creating a bridge between exposure to TradFi and on-chain markets“.

In other words, the company is not just selling financial products; it is offering a new decentralized investment experience. This vision aligns with that of Larry Fink, CEO of BlackRock, who sees tokenization as a gateway to pensions and long-term savings.

Key figures to remember

  • Robinhood has already tokenized 493 assets with a value of over 8.5 million dollars;
  • 70% of the tokens represent stocks, 24% ETFs, the rest crypto ETFs, commodities, Treasuries;
  • The tokens are accessible 24/7, starting from 1 €;
  • 19.3 million dollars minted, 11.5 million already burned, a sign of an active market.

In September, the crypto sphere witnessed a symbol: Robinhood joined the S&P 500, while Strategy was excluded. As if old codes were giving way to the bold. Does this last chapter of tokenization mark a revolution? Or simply a remake of capitalism with smart contracts?

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.