Robinhood is reportedly building a blockchain network to enable retail investors in Europe to trade US securities

According to a May 7 Bloomberg report citing sources familiar with the matter, the move seeks to expand the company's local presence by offering trading of tokenized

Brokerage fintech Robinhood is reportedly developing a blockchain network that will facilitate retail investors in Europe to trade US securities.

The move will expand the company’s local presence with trading of tokenized securities, such as stocks, according to a May 7 Bloomberg report which cited two sources familiar with the matter.

Two crypto firms, Arbitrum and the Solana Foundation, are vying to become partners in the project.

Tokenization is the process of turning real-world assets, like stocks, real estate, or commodities, into digital tokens that can be traded on a blockchain.

It offers several advantages over traditional financial instruments, rendering it an attractive proposition for firms. These benefits include reduced costs by eliminating the need for traditional financial infrastructure, increased accessibility, faster settlement times, and swifter transactions.

As a result, a growing number of brokerages and investment firms are exploring asset tokenization.

In April, after obtaining a brokerage license in Lithuania, which grants the firm the ability to provide investment services across the European Union, part of the company’s broader strategy to expand in Europe.

Earlier this year, it was also reported that the company is in advanced talks to buy cryptocurrency exchange Bitstamp.

“You can sit down in front of some software, create a coin and have it be trading in 5 minutes ... That’s a scary thing,” Tenev said in a recent interview.

“It’s also an incredibly powerful thing if you juxtapose it with how cumbersome the IPO process is.”

Robinhood’s shares were up 2.7% on the Nasdaq by 12:34pm ET (16:34pm CET) on Monday.

The company’s revenue decreased by 8.6% to $417.4m in the first quarter of 2025, from $455m in the same period last year. However, it still managed to beat the analysts’ estimates of $396.3m, according to the report.

Bloomberg reported that no agreement has yet been reached between either Arbitrum or Solana and the brokerage for the project, and that all three parties declined to comment on the matter.

Meanwhile, more traditional financial firms are also investing in blockchain-based solutions. Back in May 2018, Banco Santander became the first company to use a blockchain for investor voting at a large-scale company.

Later, in 2024, US financial giant JP Morgan created its own blockchain platform named Onyx.