Robinhood, the popular brokerage platform, is making strides towards expanding its offerings in Europe by working on blockchain infrastructure that would enable European retail investors to trade US securities. According to a report by Bloomberg News, Robinhood is in talks with a digital asset firm to support this initiative and is considering blockchain layers such as Arbitrum and Solana.
While discussions are ongoing and no final decisions have been made, this move would mark a significant expansion of Robinhood’s services in the European Union. In April, Robinhood secured a brokerage license in Lithuania, allowing it to offer stock trading and investment services across the EU. Additionally, the company has signed an agreement to acquire crypto exchange Bitstamp, pending finalization, which would grant access to Bitstamp’s MiFID-licensed multilateral trading facility for crypto-linked derivatives in the region.
The blockchain infrastructure being developed by Robinhood would tokenize US equities, enabling them to be represented on a public blockchain and traded by European users. This system has the potential to offer benefits such as near-instant settlement, cost reductions, and increased transparency throughout the trade process.
CEO Vlad Tenev has previously shown support for tokenized securities, stating that tokenized private company stocks resonate well with US investors. By venturing into blockchain-based cross-border securities trading, Robinhood is positioning itself to compete in a market that combines traditional equities with digital asset infrastructure.
The choice between Arbitrum and Solana as blockchain layers would impact network characteristics including throughput, fees, smart contract capabilities, and compatibility with the Ethereum Virtual Machine (EVM). This strategic move by Robinhood has the potential to revolutionize securities trading for European investors and further solidify its position in the global financial market.