Trading on these tokens will be commission-free, and available 24 hours a day, five days a week — a major shift from traditional stock market hours. Robinhood says it plans to expand availability to 24/7 trading in the future, and increase its stock token list to “thousands” by year-end, according to CEO Vlad Tenev, who made the announcement in France during the company’s keynote event.
Let’s break down what this means for investors and why it could change the game for international stock access.
How do Robinhood’s tokenized stocks actually work?
Robinhood’s new feature allows EU customers to trade U.S. stocks through blockchain-issued tokens. These tokens represent real stocks and ETFs and are fully backed 1:1. Investors can buy or sell these tokens without any commission, much like cryptocurrencies.
The tokens are built on Arbitrum’s blockchain, a leading Ethereum scaling solution. This setup allows the tokens to trade faster and more efficiently than traditional stock systems, and to be available almost around the clock. Robinhood executives emphasized that this is a major step in making Wall Street more accessible globally.
Why is Robinhood expanding into blockchain and crypto-style stock trading?
The move comes amid growing global demand for access to the U.S. stock market, especially as AI-focused companies like OpenAI and Nvidia dominate headlines. The tokenized model bridges the gap between traditional stock investing and crypto-style flexibility, offering easier access, faster settlement, and broader trading hours. Robinhood says it also plans to launch tokens tied to privately held companies, beginning with OpenAI and SpaceX, both of which are widely watched by tech-focused investors. These tokens would allow investors to gain exposure to companies that are not yet publicly listed — something previously unavailable to everyday traders.
What other products is Robinhood offering in crypto and derivatives?
Robinhood isn’t stopping at tokenized stocks. It’s also launching crypto perpetual futures for EU users, allowing leveraged bets on crypto prices. These futures, unlike traditional contracts, don’t have expiration dates, which gives traders more flexibility.
Additionally, U.S. users will get access to staking services, where users can lock up crypto to validate blockchain transactions in return for rewards. This follows recent clarity from the U.S. Securities and Exchange Commission (SEC), which indicated that some types of staking are not securities offerings, removing some regulatory uncertainty.
Meanwhile, Coinbase, Robinhood’s rival, is expected to roll out similar tools for U.S. investors starting next month — signaling a race to dominate this growing hybrid investing space.
Robinhood stock jumps 10% after launching tokenized US stock trading in Europe
Robinhood (HOOD) shares soared nearly 10% on June 30, closing at around $92.15, after the company launched a new feature allowing European Union users to trade tokenized U.S. stocks and ETFs. The stock opened the day at $85.65, hit a low of $85.01, and reached a high of $92.28. Total volume for the day topped 54.7 million shares, pushing Robinhood’s market cap to approximately $36.85 billion.
The rally came after Robinhood introduced blockchain-based tokens representing over 200 top U.S. stocks, including Apple, Nvidia, and Microsoft. These tokens can be traded commission-free, 24 hours a day, five days a week. They are issued through a partnership with Arbitrum, a leading Ethereum Layer-2 blockchain.
What’s driving investor excitement?
- Tokenized equity trading: Robinhood’s new tokens give EU users access to U.S. stocks with flexible hours and no fees.
- Big tech exposure: The first phase includes major names like Nvidia, Apple, and Microsoft.
- Future expansion: CEO Vlad Tenev announced plans to offer tokens tied to private companies like OpenAI and SpaceX, and to expand to thousands of tokenized stocks by year-end.
- Own blockchain on the way: Robinhood plans to launch its own blockchain, enabling 24/7 trading in the near future.
How are investors reacting to Robinhood’s crypto and token expansion?
Robinhood’s stock (HOOD.O) surged nearly 10% following the news, reaching a record high. Investors appear optimistic about the company’s direction, especially as it merges decentralized finance (DeFi) features with mainstream investing.
The plan to eventually launch its own blockchain network and offer 24/7 trading shows how Robinhood is betting big on reshaping the traditional financial system.
“Tokenization is going to open the door to a massive trading revolution,” Tenev said during the keynote.
What’s next for tokenized equities and blockchain investing?
The concept of tokenized equities — blending traditional stocks with blockchain infrastructure — is gaining traction. By reducing costs, offering fractional ownership, and removing the time constraints of normal stock exchanges, this model could reshape how global investors interact with U.S. markets.
Still, in the U.S., regulatory frameworks for tokenized stocks are not yet clear. While international platforms like Robinhood and Kraken are pushing ahead, it’s uncertain how U.S. regulators will respond to this evolving space.
But one thing is clear: Robinhood is positioning itself as a global leader in next-gen trading tools, especially for non-U.S. investors who want a piece of the booming U.S. tech and AI-driven market.
FAQs:
Q1. What is Robinhood tokenized stock trading?
It lets EU users trade U.S. stocks as blockchain tokens 24/5 without fees.
Q2. Can Robinhood tokens include companies like OpenAI and SpaceX?
Yes, Robinhood will launch tokens tied to private firms like OpenAI and SpaceX.