Robinhood is reportedly engaged on blockchain infrastructure that may allow European retail buyers to commerce US securities, Bloomberg Information reported on Might 7.
In line with the report, the brokerage platform is exploring a partnership with a digital asset agency to help the initiative and is contemplating Arbitrum and Solana as potential blockchain layers.
Individuals with direct information of the venture mentioned that discussions stay ongoing and that no last resolution has been made concerning the expertise companion or launch timeline.
A spokesperson for Robinhood declined to touch upon the matter. Representatives from Offchain Labs, the developer of Arbitrum, and the Solana Basis additionally didn’t reply to inquiries.
The plan would broaden Robinhood’s European choices past crypto buying and selling, representing the complete scope of its companies within the European Union.
In April, Robinhood obtained a brokerage license in Lithuania, authorizing it to supply inventory buying and selling and funding companies throughout the bloc.
The corporate additionally signed an settlement to amass crypto alternate Bitstamp, a deal nonetheless pending finalization. The acquisition would give Robinhood entry to Bitstamp’s MiFID-licensed multilateral buying and selling facility, opening the door to crypto-linked derivatives within the area.
Blockchain infrastructure for securities buying and selling
The infrastructure underneath improvement would tokenize US equities, permitting them to be represented on a public blockchain and traded by European customers.
Whereas the strategy continues to be in formation, such a system would supply the potential advantages of near-instant settlement, price reductions, and transparency throughout a commerce’s lifecycle.
Robinhood CEO Vlad Tenev has beforehand expressed help for tokenized securities. In February, Tenev acknowledged in a letter to buyers that he believes that tokenized personal firm shares resonate greatest with US buyers.
By constructing a blockchain-based framework for cross-border securities buying and selling, Robinhood could be positioning itself to compete in a phase that merges conventional equities with digital asset infrastructure.
The selection between Arbitrum and Solana would affect community traits similar to throughput, charges, good contract capabilities, and compatibility with the Ethereum Digital Machine (EVM).
