Robinhood Markets Inc (NASDAQ:HOOD) is building its own blockchain to support the trading of tokenised real-world assets, in a major step that will shift the US fintech's crypto business beyond digital currencies.
The new network, a so-called Layer 2 blockchain built on the Arbitrum system, will be designed to handle around-the-clock trading, self-custody of assets, and seamless movement between platforms.
Robinhood says the technology will eventually underpin its tokenised equities business, starting with more than 200 US stocks and exchange-traded funds now available in Europe.
Tokenisation refers to the process of turning conventional financial assets such as stocks into digital tokens that can be traded on a blockchain.
Robinhood's new stock and ETF tokens allow European customers to gain exposure to US securities with no commission or spread fees charged by the company.
Dividends from the underlying assets will also be paid out to token holders directly in the app.
This development marks a shift in how Robinhood sees the future of investment.
Its European crypto app, previously focused on digital coins, now functions as a broader investment platform, allowing users to buy tokenised versions of traditional assets.
The tokens are initially being issued using Arbitrum, one of the most widely used Layer 2 networks, which helps scale the Ethereum blockchain by processing transactions off-chain before settling them on the main network.
Robinhood said its own version of this technology will be optimised specifically for real-world asset trading.
Alongside the blockchain announcement, the trading platform is also introducing crypto perpetual futures for eligible customers in Europe.
These are a form of derivative contract that offers continuous exposure to crypto prices and can be traded with leverage of up to three times the initial investment.
All perpetual futures trades will be routed through Bitstamp, a long-running crypto exchange.
In the US, the company is launching crypto staking for Ethereum and Solana, allowing users to earn rewards by helping to secure and operate blockchain networks. The feature is already available in Europe.
Other updates include instant deposit bonuses for users transferring crypto to Robinhood, a new credit card that allows users to convert cashback into crypto, and a suite of tools aimed at making the trading experience more user-friendly.
These range from smarter order routing and tax lot tracking to advanced charting and an AI assistant called Cortex, which offers market analysis inside the app.