Robinhood Eyes Blockchain Network for Tokenized U.S. Stocks in Europe

Robinhood, a leading trading app, is developing a blockchain-based network to enable European retail investors to trade tokenized U.S. stocks, Bloomberg reports, citing sources familiar with the project. The initiative, still in early development, aligns with Robinhoods strategy to expand in Europe.

The company is engaging with crypto firms Arbitrum and the Solana Foundation to potentially support the blockchain trading network. No deals are finalized, and all parties declined to comment. Tokenization converts assets like stocks into digital tokens tradable on blockchain platforms, bypassing traditional market systems. This reduces costs, accelerates transactions, and broadens access for investors.

Robinhood‘s crypto focus is intensifying. In April, it secured a Lithuanian brokerage license, gaining EU-wide regulatory access. Its 2024 acquisition of Bitstamp further supports a hybrid trading ecosystem blending stocks and cryptocurrencies. CEO Vlad Tenev recently highlighted blockchain’s efficiency, stating, “You can sit down in front of some software, create a coin, and have it be trading in five minutes,” contrasting this with the slow, costly IPO process.

The brokerage isn‘t alone in leveraging blockchain. JPMorgan’s Onyx platform facilitates tokenized dollar transfers, while Santander used blockchain for investor voting in 2018. Robinhoods crypto trading volume reached $46 billion in Q1, down from $70 billion in Q4 2024 but up 28% year-over-year. Total 2024 crypto trading hit $141 billion, driven by a strong Q4. Meanwhile, equity trading volume surged to $413 billion in Q1, an 84% year-over-year increase.

Crypto-related revenue climbed 100% year-over-year to $252 million, though it dropped from $358 million in Q4 2024. Retail interest spiked in early April following U.S. tariff announcements, but margin and derivatives trading remain subdued industry-wide.

By tokenizing stocks, Robinhood aims to streamline trading for European investors, potentially reshaping retail access to U.S. markets. The project underscores blockchain‘s growing role in finance, offering faster, cheaper alternatives to traditional systems. As discussions with Arbitrum and Solana progress, the network could mark a significant step in Robinhood’s global ambitions, blending crypto innovation with its core trading platform.