Brokerage fintech Robinhood is reportedly developing a blockchain network that will enable retail investors in Europe to trade US securities. According to a May 7 Bloomberg report, this strategic move seeks to enhance Robinhood’s presence in the European market by offering trading of tokenized securities, including stocks.
Market dynamics suggesting a transformation in trading practices reveal the involvement of two crypto firms, Arbitrum and the Solana Foundation, which are vying to become partners in this innovative project. Tokenization—the process of converting real-world assets into digital tokens for trading on a blockchain—presents a viable avenue for brokerage firms aiming to democratize investment opportunities.
The advantages of tokenizing securities over traditional methods are manifold: reduced operational costs thanks to the elimination of legacy financial infrastructure, improved accessibility for investors, swifter settlement timelines, and expedited transactions. As a result, an increasing number of brokerages and investment firms are turning their attention toward asset tokenization.
Robinhood has been actively preparing for its entry into the European marketplace. In April 2025, the firm secured a brokerage license in Lithuania, facilitating its ability to offer investment services across the European Union. Furthermore, Robinhood has agreed to acquire the crypto exchange Bitstamp, which illustrates its commitment to diversifying its offerings.
In a recent interview, Robinhood CEO Vladimir Tenev highlighted the significant potential of blockchain, noting, “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. It’s also an incredibly powerful thing if you juxtapose it with how cumbersome the IPO process is.” This statement underscores the transformative nature of blockchain technology in contemporary finance.
On May 7, Robinhood’s shares increased by 2.7% on the Nasdaq, despite a reported 8.6% decline in revenue for the first quarter of 2025. However, they managed to exceed Wall Street’s projections, showcasing a resilient market position.
As of now, Bloomberg reports that no agreements have been reached between the brokerage and either Arbitrum or Solana regarding the project, with all three parties having declined to comment.
The move by Robinhood mirrors a broader trend among traditional financial firms that are increasingly exploring blockchain-based solutions. Companies like Banco Santander have already successfully initiated blockchain applications for investor voting, while JP Morgan has introduced Onyx, its proprietary blockchain platform.
Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race
