Reports suggest that Robinhood is in the process of developing blockchain infrastructure to enable European retail investors to trade US securities, as per a Bloomberg News article on May 7.
The platform is said to be exploring a collaboration with a digital asset firm to support this endeavor and is considering Arbitrum and Solana as potential blockchain layers.
Sources familiar with the project mentioned that discussions are ongoing, and no final decisions have been made regarding the technology partner or the launch timeline.
While a spokesperson for Robinhood declined to comment on the matter, there was no response from Offchain Labs, the developer of Arbitrum, or the Solana Foundation.
This initiative would expand Robinhood’s European offerings beyond cryptocurrency trading, showcasing the full range of services available in the European Union.
In April, Robinhood secured a brokerage license in Lithuania, granting permission to offer stock trading and investment services across the EU.
Additionally, the company has a pending agreement to acquire the crypto exchange Bitstamp, which would provide access to Bitstamp’s MiFID-licensed multilateral trading facility, facilitating crypto-linked derivatives in the region.
Blockchain infrastructure for securities trading
The proposed infrastructure aims to tokenize US equities, making them accessible on a public blockchain for trading by European users.
This system, still in development, promises benefits like near-instant settlement, cost efficiency, and increased transparency throughout the trading process.
CEO Vlad Tenev has shown support for tokenized securities, stating that tokenized private company stocks appeal to US investors.
By establishing a blockchain-based platform for cross-border securities trading, Robinhood aims to compete in a sector that combines traditional equities with digital asset infrastructure.
The choice between Arbitrum and Solana will impact network characteristics such as speed, fees, smart contract capabilities, and compatibility with the Ethereum Virtual Machine (EVM).
