TLDR
- Robinhood plans to offer tokenized US securities to European retail investors
- The company is considering using either Solana or Arbitrum blockchain for tokenization
- Robinhood recently obtained a brokerage license in Lithuania to expand in the EU
- This move follows Robinhood’s strong financial performance in Q1 2025
- The platform would enable 24/7 trading and potentially faster settlement times
Robinhood, the popular financial services firm, is exploring new ways to bring US securities to European investors through blockchain technology. According to reports from Bloomberg, the company is working on a platform that will offer tokenized versions of US stocks to retail traders in Europe.
The project is still in development, with Robinhood weighing options between two major blockchain networks: Solana and Arbitrum. Both blockchains offer different advantages in terms of transaction speed, costs, and compatibility.
No final agreement has been made public yet. Spokespersons from Robinhood, Offchain Labs (Arbitrum’s developer), and the Solana Foundation have not provided official comments on the matter.
Regulatory Progress Fuels Expansion
This move comes after Robinhood secured a brokerage license in Lithuania. This license allows the company to offer stock trading and investment services throughout the European Union.
The company is also in the process of acquiring crypto exchange Bitstamp. This pending acquisition would give Robinhood access to a MiFID-licensed multilateral trading facility, opening opportunities for crypto-linked derivatives in Europe.
“I think tokenized securities can really push forward US company dominance in the global market,” Robinhood CEO Vlad Tenev said. “Right now, it’s very difficult to invest in a US company if you’re overseas.”
How Tokenized Securities Would Work
The planned infrastructure would represent US equities on a public blockchain, making them tradable by European users. This approach could bring several benefits to investors.
Tokenized securities could enable near-instant settlement of trades. This is faster than the traditional two-day settlement period for stock transactions.
The blockchain-based system might also reduce costs for investors. Transaction fees could be lower due to the removal of certain intermediaries in the trading process.
Trading would be available 24/7, unlike traditional markets with limited hours. This continuous access could create deeper market liquidity and more trading opportunities.
The European regulatory environment appears more welcoming to such innovation. The EU has taken steps toward crypto banking regulation through frameworks like MiCA (Markets in Crypto-Assets).
Robinhood’s timing aligns with its recent financial success. The company reported earnings that exceeded Wall Street expectations in Q1 2025.
For the blockchain networks under consideration, this partnership could drive new usage. Either Solana or Arbitrum would likely see increased transaction volumes and user activity if selected for the platform.
Solana has recently attracted institutional interest, with BlackRock choosing the blockchain for its BUIDL money market fund. The SOL token has maintained a price around $140, supported by increasing fee revenues.
Robinhood’s most recent move follows a trend of increasing interest in tokenized real-world assets across the financial industry.