Robinhood Markets is (NASDAQ: HOOD) is reportedly looking into tapping blockchain technology to expand its offerings in Europe.
According to a report from Bloomberg, the company is developing a blockchain-based platform that would enable European retail investors to trade U.S. securities, such as stocks, in a move that could reshape cross-border investing.
This initiative aligns with Robinhood’s strategy to integrate digital assets into traditional financial systems, potentially streamlining access to global markets.
The proposed platform aims to leverage tokenization, a process where traditional assets are represented as digital tokens on a blockchain.
This approach offers several advantages, including enhanced data security, faster transaction settlements, and increased liquidity.
By tokenizing U.S. securities, Robinhood could make it easier for European investors to access US markets, which are often restricted by regulatory and operational barriers.
The company’s chief executive, Vlad Tenev, has previously highlighted the inefficiencies of current systems, noting that tokenization could simplify processes like initial public offerings compared to the rapid creation of digital coins.
To build this platform, Robinhood is exploring partnerships with blockchain networks.
Sources indicate that Arbitrum, a layer-2 solution built on Ethereum, and Solana, a high-speed blockchain, are under consideration.
While discussions are ongoing and no final agreements have been reached at the time of writing, these networks are known for their scalability and efficiency, making them suitable candidates for handling tokenized securities.
This move comes at a time when tokenization is gaining traction among traditional financial institutions.
Major players like BlackRock, Franklin Templeton, and Apollo have launched tokenized funds, with BlackRock’s USD Institutional Digital Liquidity Fund attracting over $2 billion since its debut.
Robinhood’s initiative could position it as a key player in bringing tokenized U.S. assets to European retail investors.
Recent regulatory changes in the European Union, particularly under the Markets in Crypto-Assets (MiCA) framework, may have paved the way for Robinhood’s plans.
These rules provide clearer guidelines for crypto and blockchain-based financial products, potentially reducing barriers that previously limited Robinhood’s ability to offer U.S. stock trading to EU customers.
If successfully implemented, the platform could enhance market transparency and lower costs by leveraging blockchain’s decentralized infrastructure.
Despite a reported 8.6% revenue drop during the first quarter of 2025, Robinhood’s stock rose 2.7% on May 7, 2025 and continues to remain steady.
The company’s push into tokenized securities could strengthen its foothold in Europe, where it faces competition from platforms like eToro, which recently announced plans for a U.S. IPO.
By combining its retail-friendly interface with DLT / blockchain technology, Robinhood is focused on improving how European investors engage with U.S. markets.