Robinhood said on Monday it has launched tokens that will allow its customers in the European Union to trade more than 200 U.S. stocks and exchange-traded funds, including Nvidia, Apple and Microsoft.
The commission-free tokens can be traded around-the-clock, five days a week, the trading platform said on Monday. They will be issued through a partnership with blockchain firm Arbitrum.
With the move, Robinhood stands to benefit from rising global interest in the U.S. stock market – home to some of the world’s most influential tech giants and leading beneficiaries of the AI boom.
Tokenized equities mix traditional finance with crypto-like trading, and have been gaining traction among international investors due to the better access, flexible trading hours and lower costs.
Experts believe such tokens could dramatically alter the securities investing landscape. In a January opinion piece for The Washington Post, Robinhood CEO Vlad Tenev wrote tokenization could also open the door for retail investors to access private companies’ stocks.
Menlo Park, California-based Robinhood plans to eventually develop its own blockchain that will expand trading hours for tokens to 24/7 from 24/5 currently, it said.
Last month, crypto exchange Kraken also launched equities-linked tokens for non-U.S. investors.
EXPANDING CRYPTO TOOLS
Robinhood also announced several new product offerings, including crypto perpetual futures for its EU customers and staking for U.S. users.
The perpetual futures will allow users to make leveraged bets on the prices of cryptocurrencies. Unlike traditional futures, they have no expiry date.
Rival Coinbase will also begin offering similar tools to U.S. customers from next month.
Meanwhile, staking lets customers lock up their cryptocurrency to help validate transactions on the blockchain, earning rewards in return.
The practice had been controversial in recent years, until the Securities and Exchange Commission’s staff last month said some forms of staking are not securities offerings.
