Robinhood to Launch Blockchain U.S. Stock Trading in Europe

Robinhood is actively working on infrastructure that would enable fractional ownership and trading of U.S.-based stocks using blockchain technology. This would involve converting traditional equities into on-chain tokens, thereby making them accessible to a broader global audience—particularly retail traders across the European Union.

Robinhood has already taken key regulatory steps to support this initiative. The company recently secured a brokerage license in Lithuania, allowing it to operate across EU member states under the bloc’s “passporting” system. This regulatory approval comes as part of a wider push by Robinhood to establish a strong presence in European markets, which have shown increased appetite for digital asset products amid the region's progressive crypto and fintech policies.

According to Bloomberg, Robinhood is exploring ways to make investing in U.S. assets more accessible to Europeans and is reportedly considering multiple technology partners to support a blockchain-based platform.

The core of Robinhood’s vision centers around real-world asset tokenization. This process involves issuing blockchain-based representations of tangible financial instruments, such as stocks, bonds, or ETFs, that can be bought, sold, and transferred on decentralized networks. These tokenized assets maintain their underlying value and function similarly to their traditional counterparts, but with several added benefits.

Tokenization can reduce settlement times from days to minutes, lower transaction fees, and allow for near-24/7 trading, capabilities that are difficult to achieve in traditional equity markets. It also enables fractional ownership, allowing users to invest in high-value securities in smaller denominations, which is particularly appealing to younger and retail investors.

Robinhood has partnered with Arbitrum, an Ethereum Layer-2 network, to offer low-cost, high-speed swaps via its Web3 wallet. The company has also added support for Solana within its wallet, enabling users to self-custody and transact with SOL tokens. While no additional partnerships have been announced, these moves signal Robinhood’s broader intent to expand its blockchain-based trading infrastructure.

Solana, known for its speed and low fees, has been increasingly used for tokenized asset projects, while Arbitrum’s Ethereum compatibility offers potential for integrating decentralized finance (DeFi) functionalities. Robinhood’s choice of infrastructure will likely hinge on factors like regulatory compliance, network security, and the ability to support financial-grade throughput.

Robinhood has been gradually expanding its crypto offerings in Europe since 2023. In October 2024, the company enabled cryptocurrency deposits and withdrawals for EU customers, supporting over 20 digital assets including Bitcoi, Ethereum and Dogecoin (DOGE). The move was met with enthusiasm from users and signaled the firm’s long-term intent to serve a crypto-savvy European customer base.

Robinhood CEO Vlad Tenev has expressed strong support for the transformative potential of tokenization, emphasizing that blockchain technology can enhance transparency, efficiency, and access in financial markets. He has advocated for using tokenization to democratize investment opportunities, particularly by opening access to private markets traditionally reserved for institutional investors.

Robinhood’s strategy aligns with a broader industry trend of moving traditional financial instruments onto blockchain rails. Major financial institutions, including BlackRock, JPMorgan, and Franklin Templeton, are also investing in RWA tokenization to modernize asset management and capital markets.

A Boston Consulting Group report projects that tokenized assets could represent up to $16 trillion by 2030, driven by efficiencies in issuance, custody, and transfer processes. Europe, with its MiCA (Markets in Crypto-Assets) regulatory framework, is increasingly seen as a fertile ground for such innovation.

Despite the enthusiasm, several hurdles remain. Cross-border securities trading involves complex legal and tax implications, particularly when assets are tokenized and traded via non-traditional channels. Robinhood will need to ensure that its blockchain-based securities comply with both EU and U.S. financial regulations.

Moreover, gaining investor trust in blockchain-based securities will require robust custody solutions, cybersecurity measures, and user education, especially among traditional investors unfamiliar with tokenized products.

Robinhood’s planned platform is still under development, and a launch timeline has not been officially disclosed. However, the firm’s proactive licensing and exploration of partnerships suggest an aggressive timeline.

As global fintech and crypto ecosystems mature, Robinhood’s entry into blockchain-based equity trading could position the company as a trailblazer in a new era of decentralized finance. If successful, the initiative may not only revolutionize access to U.S. financial markets for European investors but also reshape how global equities are traded and held.