Robinhood now lets European users trade tokenized U.S. stocks using a new blockchain network.
- Robinhood introduces zero-commission stock token trading in the EU.
- New layer-2 blockchain supports over 200 U.S. stock and ETF tokens.
- Perpetual futures and leveraged trading also launched in Europe.
Stock Tokens Now Available for European Users
Robinhood has launched zero-commission stock token trading for users in the European Union. These tokens represent shares of U.S. companies and exchange-traded funds (ETFs). They can be traded 24 hours a day, five days a week. Over 200 tokens will be available. This move makes it easier for investors in Europe to access U.S. financial markets.
New Layer-2 Blockchain Built on Arbitrum
To support the trading of tokenized stocks, Robinhood introduced a new layer-2 blockchain built on Arbitrum. This technology helps improve transaction speed and reduce costs. The goal is to make it simple for users to buy and trade real-world assets like stocks on the blockchain.
More Crypto Tools Now Offered in the EU
In addition to stock tokens, Robinhood also launched perpetual futures trading for eligible EU traders. These trades offer up to 3x leverage and operate through Bitstamp, which Robinhood recently bought for $200 million. Futures allow users to speculate on future prices of assets like Bitcoin, XRP, and Solana.
Robinhood Expands Crypto Footprint
This push into blockchain and tokenization comes after Robinhood launched micro futures contracts for Bitcoin, Solana, and XRP. These contracts make it easier for smaller traders to join the market. In May, the company also acquired WonderFi, a Canadian crypto firm, for $179 million.
Regulatory Focus on Tokenization in the U.S.
Robinhood is also working on policy. The firm submitted a plan to the Securities and Exchange Commission (SEC) for a national system to trade tokenized real-world assets. Their proposed platform, the Real World Asset Exchange, will connect offchain trading with onchain settlement.
Source: cointelegraph.com
