Robinhood Deepens European Expansion with Tokenized Stocks on Arbitrum

By [Author Name], [Date]

Robinhood is accelerating its push into real-world assets (RWAs) and European markets by launching a dedicated tokenization platform on Arbitrum, a layer-2 blockchain.

Announced Monday, this initiative enables Robinhood users in the European Union to trade tokenized versions of over 200 US-listed stocks and exchange-traded funds (ETFs). Key features include:

• Zero-commission trades for these tokenized securities
• 24-hour-a-day, five-day-a-week trading availability
• Trading executed via Robinhood’s newly acquired crypto exchange, Bitstamp, with derivatives backed by users’ main brokerage capital for leverage.

In conjunction, Robinhood introduced perpetual futures trading in the EU, offering eligible traders up to 3x leverage, further integrating traditional finance (TradFi) and decentralized finance (DeFi) functionalities.

RWAs and Tokenization: An Ongoing Strategy

Robinhood’s efforts extend beyond market access. The company has:

• Launched micro futures contracts for digital assets like Bitcoin (BTC), XRP (XRP), and Solana (SOL).
• Acquired Canadian crypto operator WonderFi for $179 million.
• Advocated for standardized RWA tokenization by submitting a proposal to the US Securities and Exchange Commission (SEC) for a national framework. Central to this is its planned **Real World Asset Exchange**, designed for off-chain trading and on-chain settlement.

This push makes Robinhood the second major brokerage to offer tokenized stocks to European investors; Gemini recently launched a tokenized version of MicroStrategy (MSTR) stock.

Robinhood’s Crypto Derivatives Push

The launch of perpetual futures in the EU follows Robinhood’s unveiling of its tokenization initiative this week. These perpetual contracts allow traders leverage exposure without needing large capital commitments, further broadening Robinhood’s offering.

Growth in the RWA Tokenization Market

While the total RWA market has exploded, growing to over $24 billion according to recent assessments (e.g., from RedStone), traders should note further points:

• Significant RWA growth has primarily occurred through private credit and US Treasury debt. These segments dwarf the market for tokenized stocks.
• Current value attributed to tokenized stocks was less than $400 million a year ago, highlighting early stage development compared to other asset classes within RWA.

(RWA data source mentioned in the original: RedStone report)

This move underscores Robinhood’s strategic commitment to integrating blockchain technology into traditional markets while expanding its European footprint, poised to reshape asset accessibility for EU investors.