Robinhood Crypto Expands with Tokenized Stocks & Layer-2 Blockchain – Latest Updates

Robinhood Shakes Up Crypto and TradFi with Tokenized Stocks and Layer-2 Blockchain Ambitions

A Bold Move into 24/7 Trading and Asset Tokenization

Robinhood (HOOD) has sent shockwaves through both traditional finance and crypto markets with its latest announcement: the launch of tokenized U.S. stocks and ETFs for European users, powered by Arbitrum’s Layer-2 blockchain. The brokerage’s stock surged nearly 10% following the news, hitting a record high of $91, as investors cheered its aggressive push into blockchain-based financial services.

The initiative allows EU-based customers to trade over 200 tokenized U.S. equities and ETFs—including giants like Apple, Nvidia, and Microsoft—around the clock during weekdays (24/5 trading). Notably, Robinhood is also introducing tokens representing shares in private companies like OpenAI and SpaceX, a first for retail investors.

Why Arbitrum? Speed, Scalability, and a Bridge to Robinhood’s Own Blockchain

Robinhood’s choice of Arbitrum as the initial issuance platform is no accident. The Ethereum Layer-2 solution offers near-instant settlements and ultra-low fees (as little as $0.02 per transaction), making it ideal for high-frequency trading. Steven Goldfeder, CEO of Offchain Labs (Arbitrum’s developer), emphasized that the user experience is designed to be seamless—many EU users may not even realize they’re interacting with blockchain technology.

But this is just the beginning. Robinhood confirmed it is building its own Layer-2 blockchain, based on Arbitrum’s tech stack, to support 24/7 trading, self-custody, and cross-chain asset transfers. While no launch date was specified, insiders suggest a late 2025 or early 2026 rollout.

Expanding Crypto Offerings: Perps in EU, Staking in US

Alongside tokenized stocks, Robinhood is rolling out perpetual futures trading for EU customers, offering up to 3x leverage on crypto derivatives. Orders will be routed through Bitstamp, which Robinhood acquired for $200 million last year.

For U.S. users, the platform now enables staking for Ethereum (ETH) and Solana (SOL), allowing investors to earn yield directly within the app. This move positions Robinhood against native staking providers like Lido and centralized exchanges like Coinbase.

Market Impact: A $18.9 Trillion Tokenization Opportunity?

Robinhood’s pivot aligns with a broader industry trend toward asset tokenization, which Boston Consulting Group and Ripple estimate could grow into an $18.9 trillion market by 2033. Competitors like Kraken and Bybit have already introduced tokenized stocks, but Robinhood’s decision to develop its own tokenization engine—rather than partnering with third parties—signals a long-term commitment to dominating this space.

CEO Vlad Tenev framed the move as transformative: "Tokenization is going to open the door to a massive trading revolution," he declared at the ETHCC 2025 conference in Cannes.

Regulatory Tailwinds and Challenges

The announcement comes amid a favorable regulatory shift under the Trump administration, which has dropped several high-profile crypto enforcement actions and signaled support for blockchain innovation. However, questions remain about how U.S. regulators will treat tokenized securities, especially if Robinhood seeks to expand the offering stateside.

What’s Next?

With plans to expand its tokenized stock catalog to "thousands" by year-end and a proprietary blockchain in the works, Robinhood is betting big on crypto’s role in reshaping global finance. Whether this gamble pays off will depend on adoption rates, regulatory clarity, and the platform’s ability to compete with agile crypto-native exchanges.

Share your thoughts on our X: Will Robinhood’s tokenized stocks attract mainstream investors, or is this a niche product for crypto enthusiasts?

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• CoinDesk: "Robinhood Pushes Deeper Into Crypto With Own Blockchain, Tokenized Stock Launch"

• BeInCrypto: "Robinhood Unveils Blockchain Plans, Tokenized Stocks, and Staking at EthCC 2025"

• Reuters: "Robinhood launches tokens allowing EU users to trade in US stocks"

• Fortune: "Robinhood plans to launch its own blockchain, offers ‘Stock Tokens’ in EU"