Robinhood Expands Tokenization to Nearly 500 US Stocks, ETFs on Arbitrum

Blockchain-based derivatives, not real shares

In June, Robinhood launched a tokenization-focused layer-2 blockchain built on Arbitrum, allowing EU users to trade tokenized US stocks and ETFs as part of its real-world asset (RWA) expansion.

The company‘s stock tokens mirror the prices of publicly traded US securities but don’t represent direct ownership of the underlying shares. Instead, they are structured as blockchain-based derivatives regulated under MiFID II (Markets in Financial Instruments Directive II), according to the company.

The company also claims the stock tokens offer 24-hour market access, no hidden fees beyond a 0.1% FX charge and the ability to start investing with just 1 euro ($1.17).

However, the rollout has drawn scrutiny. In July, the Bank of Lithuania, which regulates Robinhood in the EU, requested clarification on how the tokens are structured. Tenev said the firm welcomes the review.

Robinhood deepens its crypto expansion

Robinhoods tokenization rollout came shortly after the brokerage firm launched micro futures contracts for Bitcoin (BTC), XRP (XRP) and Solana (SOL).

Earlier in May, the firm acquired Canadian crypto platform WonderFi in a $179 million deal, further expanding its global footprint. Robinhood has also been pushing for clearer tokenization regulations in the US, submitting a proposal to the Securities and Exchange Commission for a unified national framework governing RWAs.