Robinhood, the U.S.-based stock trading platform, is set to enhance its presence in Europe by introducing access to tokenized U.S. securities for local investors.
As reported by Bloomberg, the company is developing a distributed ledger technology (DLT) platform and is currently engaging in discussions with a digital assets firm, the name of which has not been disclosed. Noteworthy blockchain providers associated with this initiative include Arbitrum and Solana.
Tokenization—an innovative process that represents securities on a blockchain—aims to democratize investment opportunities by making it easier for individuals to access stocks and enhancing liquidity for tangible assets like real estate and private market investments. After a period of relative inactivity, tokenization is gaining momentum among securities firms and asset managers. A recent report from web3 company Ripple projects that the tokenization market could reach a value of $18 trillion by 2030.
Currently, Robinhood’s European users can already engage in cryptocurrency trading. The company has recently obtained a brokerage license in Lithuania, paving the way for traditional equity trading services throughout the EU. Furthermore, Robinhood has established an office in the UK as of March 2024, aimed at facilitating access for UK investors to U.S. stocks.
Jordan Sinclair, president of Robinhood UK, shared insights in an interview with FinextraTV earlier this year, emphasizing the importance of understanding local customer needs. He stated, “When we look to expand, it’s essential to grasp the local customer’s pain points. Our goal is to provide innovative solutions, such as 24/5 trading, tailored to the UK market, effectively breaking down time zone barriers for investors.”
Following a significant surge in revenue during the pandemic driven by a boom in online trading, Robinhood is now positioning itself to capture a larger share of the European market as part of its ambitious expansion strategy.