Robinhood, the popular trading platform, is significantly expanding its cryptocurrency offerings. The company recently unveiled a suite of new services, including tokenized stock trading, staking for major cryptocurrencies like Ethereum and Solana, and the development of its proprietary Layer 2 (L2) blockchain network.
Tokenized Stocks: Bridging Traditional and Crypto Markets
Robinhood's introduction of tokenized stock shares marks a pivotal shift in its service model. Tokenization converts traditional assets, such as stocks and ETFs, into digital tokens on a blockchain. Initially launching in Europe, this service enables users to trade over 200 U.S. stocks and ETFs 24/7.
Key features of Robinhood's tokenized stocks:
- Access to 200+ U.S. stocks and ETF tokens for European customers.
- Dividend payments directly deposited into users' Robinhood accounts.
- Seamless integration with existing crypto trading functionalities.
This initiative transforms Robinhood from a "crypto-only app to a crypto-powered all-in-one investment app," as described by the company.
Trading Mechanism and Blockchain Integration
The tokenized stocks will debut on Arbitrum, an Ethereum Layer 2 scaling solution, ensuring faster and cheaper transactions. Robinhood plans to migrate this service to its own blockchain in the future, aligning with industry trends where exchanges like Bybit, Kraken, and Gemini already offer similar services.
Robinhood’s Proprietary L2 Blockchain
Robinhood is developing its own Layer 2 blockchain tailored for tokenized assets. Leveraging technology similar to Arbitrum, this blockchain aims to enhance scalability and efficiency for digital asset trading.
Anticipated timeline:
- Expected launch: Late 2024 or early 2025 (as per insider reports to CoinDesk).
Staking Services: Earn Rewards on Crypto Holdings
Robinhood now offers staking for Ethereum and Solana, available to users in the U.S., EU, and European Economic Area (EEA). Crypto staking allows users to lock up their tokens to support blockchain operations and earn rewards in return.
How staking works:
- Users lock a portion of their crypto holdings.
- The blockchain network uses these tokens for validation.
- Users receive additional crypto as rewards, akin to interest earnings.
Perpetual Futures and Additional Offerings
Robinhood has introduced perpetual futures trading in the EU, processed through Bitstamp, a recently acquired crypto exchange. Additionally, the company is rolling out promotional incentives:
Current promotions:
- EU users can receive a 1% deposit boost for transferring crypto to Robinhood.
- Potential increase to 2% if total deposits reach $500 million.
Robinhood Gold Credit Card Benefits
Starting September, U.S. customers using the Robinhood Gold credit card can automatically convert cashback rewards into cryptocurrency purchases, further integrating crypto into everyday financial activities.
Robinhood’s Strategic Vision in Crypto
These expansions underscore Robinhood's commitment to becoming a leader in the digital asset space. Recent moves include:
- Launching micro-futures for XRP and Solana.
- Introducing scaled-down Bitcoin futures for U.S. customers.
- Acquiring WonderFi, a Canadian crypto platform.
Vlad Tenev, Robinhood’s CEO, emphasized this vision: "Our latest offerings lay the groundwork for cryptocurrency to become the backbone of the global financial system."
👉 Explore Robinhood’s latest crypto innovations
FAQs About Robinhood’s New Crypto Services
1. What are tokenized stocks?
Tokenized stocks are digital representations of traditional stocks traded on a blockchain, enabling 24/7 trading and direct dividend payments.
2. Which cryptocurrencies support staking on Robinhood?
Currently, Ethereum and Solana staking are available for eligible users.
3. When will Robinhood’s L2 blockchain launch?
The launch is anticipated in late 2024 or early 2025, pending development progress.
4. How does the deposit boost work for EU users?
Transfer crypto to Robinhood to receive a 1% bonus, potentially increasing to 2% if deposit milestones are met.
5. Can U.S. customers stake crypto on Robinhood?
Yes, staking is available for U.S., EU, and EEA users.
6. What is the benefit of perpetual futures?
They allow continuous trading without expiration dates, offering flexibility for traders.