Robinhood has publicly reiterated plans to introduce tokenized stock trading after RBC’s launch on the firm’s new Ethereum-compatible layer-2, Robinhood Chain. The announcement during the EthCC conference in Paris is a key moment for the company’s further move into decentralized finance (DeFi). Robinhood Chain, which was developed on Arbitrum Orbit, gives users revolutionary 24/7 trading. Beyond the benefits of market accessibility, this innovation gives users the ability to self-custody their tokenized stocks.
Robinhood Chain functions as an Ethereum-compatible layer-2 solution, and extension of technology built by Arbitrum Orbit. This architecture is similar to rollup models, and allows Robinhood a complete control over its private sequencer. This means that the platform gets to keep all transaction fees produced. This powerful integration means that traders can now use fractionalized shares of the largest U.S. stocks directly from DeFi platforms.
This project lays the groundwork for future tokenized stock trading. As a result, users can successfully trade tokenized stocks across many different DeFi applications. Led by CEO Vlad Tenev, Robinhood aims to offer a more flexible and programmable trading experience, building upon its existing 24/5 trading schedule and exploring the potential for full 24/7 access.
Robinhood, for its part, has 25.9 million funded accounts and eye-popping trading volume. This notable presence makes the platform a leader in the intersection of traditional finance and blockchain technology. The increased functionality of the new platform greatly expands users’ trading options. It’s a good thing—it encourages the old-school Wall Street exchanges to respond to the trend.
"Robinhood’s tokenisation plan puts pressure on Wall Street exchanges... If incumbent exchanges can’t adapt, they risk being left behind as mere custodians of a less functional version of the same assets." - Galaxy Digital
