Robinhood, the well-known trading platform, is making big waves in the crypto world. They just announced a wave of new services. These include allowing people to trade tokenized stocks, offering staking for popular cryptocurrencies like Ethereum and Solana, and even building their very own blockchain network.
The company shared these plans in a recent press release. They aim to boost their role in the digital asset market. One key move is the launch of tokenized stock shares.
Think of tokenization as turning real-world things, like company stocks or bonds, into digital tokens. These digital bits live on a blockchain. Robinhood’s new tokenized stock offering starts in Europe. This means European customers can trade over 200 US stocks and exchange-traded funds, or ETFs, around the clock, seven days a week.
“European customers will get access to 200+ U.S. stocks and ETF tokens,” the company noted in a blog post. They also said that people holding these stock tokens will get dividend payments straight to their app.
Trading Stocks on the Blockchain
Users on Robinhood already trade US stocks and ETFs. But now, they can trade these same investments on a blockchain using tokens. These tokens are tied to famous companies like Tesla and Apple. This is different from trading cryptocurrencies such as Bitcoin and Ethereum, which are also available on the app.
Robinhood says this move changes them from just a “crypto-only app to a crypto-powered all-in-one investment app.” It’s a big step.
These tokenized stocks will first appear on Arbitrum. That’s a “Layer 2” network that helps the Ethereum blockchain work faster. Over time, Robinhood expects to move this service to its own blockchain. Many other crypto exchanges, like Bybit, Kraken, and Gemini, now offer tokenized stocks. Even Coinbase is reportedly seeking permission to do the same.
Building Their Own Blockchain
As part of their big announcements, Robinhood shared that they are building their own Layer 2 blockchain. This new network will be designed specifically for tokenized assets. It will use the same core technology that powers Arbitrum.
Robinhood hasn’t given a clear launch date for this new blockchain. However, sources close to the company told CoinDesk it might roll out late this year or early next year.
Staking and Other New Services
Robinhood also announced new perpetual futures trading in the European Union. They are also starting to offer staking for Ethereum and Solana. This staking service will be available to users in the United States, the European Union, and the European Economic Area.
Crypto staking is pretty simple. It means you lock up some of your crypto tokens on a blockchain network. This helps the network run smoothly. In return, you earn more crypto, much like earning interest in a savings account. It’s like lending your digital money to the network and getting paid for it.
Robinhood’s new perpetual futures for European users will process trades through Bitstamp. Robinhood recently bought Bitstamp for $200 million. Bitstamp is one of the oldest crypto exchanges around.
For a short time, investors in the EU can transfer crypto to Robinhood and get a 1% deposit boost. This could double to 2% if total deposits reach $500 million.
The Robinhood Gold credit card will also give US customers cash back on their purchases. Starting in September, cardholders can use those rewards to automatically buy cryptocurrencies.
Robinhood’s Crypto Ambition
These new products show Robinhood’s strong desire to grow in the world of digital finance and crypto.
Just recently, Robinhood added micro-futures for XRP and Solana. They also launched a smaller version of their Bitcoin Friday futures for US customers. Before all this, the company announced it would buy WonderFi, a crypto platform based in Canada.
Vlad Tenev, Robinhood’s President and CEO, has a bold vision. He said, “Our latest offerings lay the groundwork for cryptocurrency to become the backbone of the global financial system.” This statement clearly shows Robinhood’s long-term plan to deeply integrate crypto into its core business.