Wall Street Meets Web3

Robinhood, the trading platform that revolutionized commission-free stock trading, is now making its most audacious move yet transforming into a full-fledged crypto-native financial powerhouse. In a sweeping announcement at its “To Catch a Token” event in Cannes, France, the company unveiled a trifecta of innovations: a proprietary Layer 2 blockchain, the launch of tokenized U.S. stocks, and a broader crypto suite aimed at reshaping global retail investing.

Building Its Own Blockchain: Robinhood Chain

At the heart of this transformation is Robinhood’s upcoming Layer 2 blockchain, built on the Arbitrum tech stack. Designed specifically for tokenized real-world assets (RWAs), the blockchain will support:

1. 24/7 trading of tokenized assets
2. Self-custody for users
3. Cross-chain bridging for seamless asset movement
4. Optimized settlement for equities, ETFs, and private equity tokens like OpenAI and SpaceX shares

This move positions Robinhood not just as a trading platform, but as a blockchain infrastructure provider an ambitious leap into the decentralized finance (DeFi) space.

Tokenized Stocks: Wall Street Meets Web3

Robinhood has launched over 200 tokenized U.S. stocks and ETFs for European users, including major names like Apple, Tesla, and the S&P 500 ETF. These tokens:

1. Are initially issued on Arbitrum
2. Offer zero commissions, dividend support, and 24/5 trading
3. Are backed 1:1 by real shares held by a regulated custodian
4. Will eventually migrate to Robinhood’s own blockchain

This rollout transforms Robinhood’s EU app from a crypto-only platform into an “all-in-one investment app powered by crypto,” signaling a strategic pivot toward tokenized finance.

Global Expansion and Regulatory Tailwinds

Robinhood’s crypto expansion is strategically focused on Europe, where the Markets in Crypto-Assets (MiCA) framework provides regulatory clarity. The company is also leveraging recent acquisitions Bitstamp and WonderFi to expand its crypto footprint across Europe and Canada.

In the U.S., Robinhood is cautiously optimistic. CEO Vlad Tenev has advocated for clear tokenization regulations and hinted at future domestic expansion once the regulatory environment stabilizes.

Beyond Trading: A Crypto Super App Vision

Robinhood’s broader crypto suite includes:

Crypto perpetual futures with up to 3x leverage (EU only)

Crypto staking for Ethereum and Solana (U.S. and EU)

Smart Exchange Routing for best execution across exchanges

Cortex an AI-powered assistant for market insights

Crypto cashback credit card and instant deposit boosts

These features aim to make Robinhood a “financial super app” that blends traditional finance with DeFi-native tools.

Why It Matters

Robinhood’s pivot into tokenized assets and blockchain infrastructure is more than a product update it’s a strategic bet on the future of finance. With the tokenized asset market projected to reach $18.9 trillion by 2033, Robinhood is positioning itself at the intersection of accessibility, decentralization, and global scale.

As the lines blur between Wall Street and Web3, Robinhood’s latest moves could redefine what it means to invest in the digital age.