- EU users can trade 200 tokenized US stocks on a blockchain
- Zero commission trades with dividend payouts in the app
- Trading 24/5 on Arbitrum, with migration to Robinhood’s own chain
The online brokerage Robinhood has announced an expansion of its crypto and stock trading services across the European Union. With the unveiling of Stock Tokens, customers can now trade tokenized shares of U.S. companies on a blockchain with no commission fees and receive dividends directly through the app. This move supports Robinhood’s goal to blend traditional equities with decentralized finance while delivering an accessible experience for users irrespective of their crypto knowledge.
Robinhood Stock Tokens: Zero Commission and Dividend Access
Robinhood Stock Tokens represent fractional shares of over 200 prominent companies wrapped as digital assets on a blockchain. These tokens carry zero commission fees, enabling cost-effective trading for European users around the clock. Holders will receive dividend payments inside the app, mirroring the cash distributions of traditional stock ownership. Vlad Tenev, the company’s chairman and CEO, revealed that tokens will even include stakes in privately held firms such as OpenAI and SpaceX, offering exposure previously limited to private investors. Robinhood tokens make equity ownership more inclusive and frictionless.
EU Market Access and Trading Hours
European customers will gain uninterrupted access to these tokenized shares 24 hours a day, five days a week. This schedule extends beyond standard market hours, granting flexibility to trade outside Wall Street’s conventional window. Robinhood’s platform leverages the Arbitrum network—a layer 2 blockchain built atop Ethereum—to ensure faster transactions and reduced fees, critical factors for delivering a smooth trading environment to users unfamiliar with cryptocurrency platforms.
Layer 2 Blockchain Strategy and Arbitrum Integration
The initial issuance of tokenized stocks on Arbitrum allows the brokerage to tap into the benefits of layer 2 solutions, including reduced latency and enhanced scalability. Layer 2 chains operate on top of Ethereum, enabling thousands of transactions per second without congesting the mainnet. As part of its long-term roadmap, Robinhood plans to migrate these tokenized shares to a proprietary layer 2 chain built using Arbitrum’s open-source software. This custom chain will support trading seven days a week and serve as the foundation for the firm’s vision of a blockchain-powered financial ecosystem.
Robinhood Crypto Product Expansion Under New Regulation
Under the banner of crypto expansion, Robinhood has leveraged a friendlier regulatory climate in Washington, D.C., to broaden its digital asset offerings. After President Donald Trump, identifying as a “pro-crypto president,” won reelection in November, the brokerage reinstated delisted tokens such as Solana and XRP that were removed following 2023 SEC actions. Once the administration restructured the SEC’s crypto enforcement arm and dropped several high-profile lawsuits, including one targeting the company’s crypto arm, Robinhood accelerated its rollout of new features. This regulatory shift has underpinned Robinhood’s strategic push into Europe and beyond.
Strategic Acquisitions Fueling Robinhood Growth
European expansion coincides with major acquisitions designed to accelerate market entry and product diversity. In May, the firm agreed to acquire Toronto-based WonderFi for nearly $180 million, a deal slated to close in the second half of this year. This move provides Robinhood with a ready-made Canadian footprint and additional crypto infrastructure. In June, it completed its $200 million purchase of Bitstamp, following a year-long regulatory review. These acquisitions underscore Robinhood’s commitment to global growth and enhance its capacity to support diversified trading services.
Enhanced Crypto Derivative Offerings and Staking Features
As part of its Monday announcement, Robinhood revealed plans to introduce perpetual futures trading for crypto derivatives to European users. These instruments allow speculators to bet on the future price of cryptocurrencies without expiry, offering advanced risk management tools. Simultaneously, the platform will enable U.S. customers to stake select tokens—initially Ethereum and Solana—allowing investors to earn rewards by contributing to network security. These derivative offerings reflect Robinhood’s broader strategy to cater to both traditional investors and crypto natives.
Conclusion
Robinhood’s launch of stock tokens and expansion of crypto services underscores its ambition to fuse equity trading with decentralized technology. By offering commission-free tokenized shares, extended trading hours, and robust staking and futures products, the company is positioning itself at the forefront of a new era in digital finance. As its proprietary layer 2 chain takes shape and strategic acquisitions solidify international presence, Robinhood aims to redefine how investors engage with stocks and cryptocurrencies worldwide.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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