Robinhood is developing a blockchain-based program to allow traders in Europe access to U.S. financial assets, two people familiar with the matter told Bloomberg.
The new program will reportedly grant European traders access to U.S. financial assets via tokenization technology.
Three blockchains, Arbitrum (ARB), Ethereum (ETH) and Solana (SOL) are being considered for the platform which will be in partnership with a digital asset firm, according to Bloomberg.
The platform is still in early development and no further details including which types of assets will be available for trading on the platform have been shared yet.
Tokenized assets have become a dominant area for traditional financial firms to push further into crypto. Several companies have launched tokenized funds in the past, with some analysts forecasting the market to grow to $23.4 trillion by 2033.
Tokenization refers to the process of creating a digital token for a traditional asset on the blockchain boosting data security and allowing faster transaction settlement and increased liquidity, among other things.
In January, Robinhood CEO Vlad Tenev criticized current U.S. regulations which have yet to provide a clear framework and rules for registering security tokens — for blocking what could be a major financial shift that could open up private-market investments to everyday investors through tokenization.
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