After Scoring Regulatory Wins, Robinhood Explores Solana And Arbitrum To Tokenize US Securities

Insiders with knowledge of the matter say Robinhood is exploring the use of Solana and Arbitrum to tokenize US stocks.

Financial services firm, , is preparing to offer EU residents access to US securities through a platform that will feature tokenized versions of the securities, a move that will be part of a partnership with a crypto-native financial services firm, according to people familiar with the matter.

Insiders say the platform will be powered by either Solana (CRYPTO: SOL) or Arbitrum and that a final agreement is yet to be reached.

The company will be looking to build on a series of regulatory wins in Europe. In July, the company secured a brokerage license in Lithuania, a key step in its efforts to expand in the EU.

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

The move comes after stellar earnings from the company that beat Wall Street estimates.

While the company has been exploring tokenization for some time, EU regulations are now spurring the company to accelerate its plans. Despite the U.S. taking a tougher stance on crypto, the EU has been forging ahead, particularly in crypto banking.

The EU is setting the stage for a broader rollout of tokenized securities, setting the stage for a new era of cross-border investment.

Insiders say the platform will offer a new class of investors access to U.S. stocks, which are currently limited to local investors.

The development also pushes the boundaries of traditional finance and cryptocurrencies closer together. A platform by Robinhood offering tokenized U.S. securities will allow for 24/7 trading and deeper market liquidity.

With the platform operating under the EU's Markets in Crypto Assets (MiCA) regulations, it will also offer sufficient credentials for institutional investors to participate in the tokenized securities market.

Both Solana and Arbitrum will see transactions surge, and the amount of user and fee revenue will depend on which blockchain is selected for the platform.

Solana has seen increased interest from institutions recently, with BlackRock (NYSE:) reportedly choosing the blockchain for its Build Money Market Fund. Solana is trading at $140 after the platform’s total revenue surpassed Ethereum (CRYPTO: ETH) in Q2 2023.