Robinhood (NASDAQ: HOOD) is working on a blockchain-based platform that would allow retail investors in Europe to trade US securities, according to people familiar with the matter. The initiative would expand the company's European presence beyond its current cryptocurrency offerings in the region.

Robinhood Developing Blockchain Platform for European Trading of US Securities

The platform is expected to launch through a partnership with a digital asset firm, with both Arbitrum and Solana blockchains under consideration, though no final agreement has been reached. Neither Robinhood nor the potential blockchain partners have officially commented on the development, first reported by Bloomberg.

This move aligns with growing interest in tokenized securities across the financial industry. By representing traditional financial instruments on blockchain technology, companies can potentially reduce costs associated with traditional trading infrastructure while increasing transparency and standardization.

Vlad Tenev, Chairman and Chief Executive Officer of Robinhood
Vlad Tenev, Chairman and Chief Executive Officer of Robinhood, Source: LinkedIn

“Tokenized securities can really push forward US company dominance in the global market,” Robinhood CEO Vlad Tenev said in a March podcast. “Right now, it's very difficult to invest in a US company if you're overseas.”

Robinhood has been strategically positioning itself for European expansion, securing a brokerage license in Lithuania last month that allows it to offer investment services throughout the European Union. The company also signed a deal to acquire crypto exchange Bitstamp in June 2024.

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$5 Billion in Tokenized RWAs and $20 Billion in Blockchain

There’s serious money at stake. The real-world asset (RWA) tokenization market has already attracted $5 billion in investments, with forecasts projecting an average annual growth rate of 25%.

The initiative comes as major financial institutions increasingly explore blockchain applications. A Global Financial Markets Association report suggests distributed ledger technology could unlock approximately $20 billion annually in global clearing and settlement costs.

Financial giants including BlackRock, Franklin Templeton, and Apollo have already launched tokenized funds, with BlackRock's USD Institutional Digital Liquidity Fund attracting over $2 billion since its launch last year.

Robinhood shares rose 2.7% following reports of the blockchain initiative, despite the company reporting an almost 9% revenue decline in the first quarter of 2025.

Source: Finance Magnates