Robinhood Explores Bringing US Securities to European Investors Through Tokenization

Robinhood, the popular financial services firm, is exploring new ways to bring US securities to European investors through blockchain technology.

Financial services firm Robinhood (HOOD) is exploring ways to bring US securities to European investors using blockchain technology, reports Bloomberg.

What Happened: According to the report, the company is developing a platform to offer tokenized versions of US stocks to retail traders in Europe.

The project is still in the planning stages, with Robinhood considering two major blockchain networks: Solana (CRYPTO: SOL) and Arbitrum, a Layer 2 scaling solution for Ethereum (CRYPTO: ETH). Both blockchains offer different advantages in terms of transaction speed, costs, and compatibility with existing technology.

So far, no final agreement has been reached, and spokespeople from Robinhood, Offchain Labs - the developer of Arbitrum, and the Solana Foundation did not provide immediate comment.

This initiative follows Robinhood's recent move to secure a brokerage license in Lithuania earlier this year. The license allows the company to offer stock trading and investment services throughout the European Union.

Moreover, Robinhood is in the process of acquiring cryptocurrency exchange Bitstamp. The pending acquisition would provide the company with a MiFID-licensed multilateral trading facility, opening possibilities for offering crypto-linked derivatives in Europe.

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

How It Works: The planned infrastructure would involve registering and maintaining US equities on a public blockchain, rendering them capable of being traded by European users. This approach could hold several advantages for investors.

Tokenized securities could facilitate nearly instant settlement of trades, in contrast to the traditional two-day period for settling stock transactions.

The blockchain-based system might also contribute to lower costs for investors. Transaction fees could be reduced due to the involvement of fewer intermediaries in the trading process.

Trading would be available around the clock, unlike traditional markets with limited trading hours. This continuous access could foster deeper market liquidity and create more trading opportunities.

The European regulatory landscape appears more open to such innovations, as the EU has been taking steps toward regulating crypto banking with frameworks like MiCA (Markets in Crypto-Assets).

The new initiative from Robinhood comes after the company disclosed earnings that exceeded Wall Street expectations for the first quarter of 2025.

For the two blockchains being considered, this partnership could drive new adoption. Either Solana or Arbitrum would likely see increased transaction volume and user activity if selected for the platform.

Solana has recently seen interest from institutional investors, with BlackRock (NYSE:BLK) selecting the blockchain for its BUIDL money market fund. The SOL token has sustained a price above $140, supported by the increasing revenue from Solana's native token fee.

Robinhood’s latest move follows a broader trend of surging interest in tokenized versions of real-world assets, like equities, bonds, and commodities, among financial institutions.