Robinhood Expands Crypto and Stock Token Offerings with New Blockchain and EU Focus

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Robinhood has announced a significant expansion of its financial product suite, focusing on cryptocurrency services and the introduction of stock tokens for European users. The company also revealed plans for its own Layer 2 blockchain and a range of new features aimed at making investing more accessible.

Stock Tokenization and Layer 2 Blockchain Development

Robinhood is now offering tokenized US stocks and ETFs to eligible customers in the European Union. These Robinhood Stock Tokens provide exposure to US equities without commissions or added spreads from Robinhood, though other fees may apply. The tokens also support dividend payments and allow trading access 24 hours a day, five days a week.

Initially, these stock tokens will be issued on Arbitrum, a popular Layer 2 scaling solution. However, Robinhood is developing its own proprietary Layer 2 blockchain, also based on Arbitrum technology, which will eventually host these tokenized assets. The new blockchain is being optimized for real-world asset tokenization and will support features like 24/7 trading, seamless bridging between networks, and self-custody options.

European customers can access over 200 US stock and ETF tokens through the Robinhood app, which now functions as a comprehensive investment platform rather than just a crypto app.

Perpetual Futures Trading in the EU

Robinhood is introducing cryptocurrency perpetual futures trading to eligible EU customers. These derivatives products provide continuous market exposure with up to 3x leverage. The company plans to roll out perpetual futures to all eligible customers by the end of summer 2025.

The platform's interface has been designed to simplify the typically complex process of trading perpetuals, with intuitive controls for setting position sizes and managing margin requirements. All orders are routed through Bitstamp's perpetual futures exchange.

This offering represents Robinhood's continued effort to provide advanced trading tools to active traders worldwide through an accessible platform.

Crypto Staking Expansion in the United States

Eligible US customers can now participate in crypto staking, starting with Ethereum and Solana. The feature allows users to contribute to network operations and earn competitive reward rates through Robinhood's user-friendly interface. Crypto staking has been available to Robinhood customers in the EU and European Economic Area and is now expanding to the US market, though availability may vary by state.

Enhanced Product Suite and Features

Robinhood has introduced several additional products and features to improve the crypto trading experience:

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Frequently Asked Questions

What are Robinhood Stock Tokens?
Robinhood Stock Tokens are digital representations of US stocks and ETFs that provide exposure to the underlying assets without requiring direct ownership. They allow European customers to trade US equities with zero commissions from Robinhood and receive dividend payments directly in their app.

How does Robinhood's Layer 2 blockchain work?
Robinhood is developing a Layer 2 blockchain based on Arbitrum technology that will be optimized for tokenizing real-world assets like stocks. It will support 24/7 trading, seamless bridging between networks, and self-custody options, though it is currently in development and not yet available to users.

What are the risks associated with perpetual futures trading?
Perpetual futures trading involves significant risk and is not appropriate for all investors. These derivative products use leverage which can amplify both gains and losses. Investors should carefully consider their experience, risk tolerance, and financial situation before engaging in perpetual futures trading.

How does crypto staking work on Robinhood?
Crypto staking allows users to participate in blockchain network operations by holding certain cryptocurrencies. In return, users earn rewards. Robinhood offers staking for Ethereum and Solana to eligible customers in supported regions with a user-friendly interface.

Are Robinhood's new products available worldwide?
No, availability varies by region. Stock tokens and perpetual futures are currently available to eligible EU customers, while staking is available to eligible US customers and previously was available in the EU. Other features have specific regional availability based on regulatory approvals.

What security measures protect these new investments?
Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. The company operates under regulatory licenses in various jurisdictions, but investors should understand that all investments involve risk and loss of principal is possible.

Robinhood continues to expand its product offerings with a focus on making advanced financial tools accessible to a broader audience through intuitive interfaces and educational resources.

👉 Learn more about asset tokenization