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:
- Instant Boost on Crypto Deposits: For a limited time, US and EU investors can transfer crypto into Robinhood and earn a 1% deposit boost, with the potential to increase to 2% if total platform deposits reach $500 million during the promotion period.
- Crypto Credit Card Rewards: Starting fall 2025, US customers using the Robinhood Gold Credit Card will be able to automatically use their cash back rewards to purchase cryptocurrency.
- Cortex for Crypto: Later this year, Robinhood will expand its AI-powered investing assistant, Cortex, to provide curated insights, trends, and event-driven market analysis directly within each token's detail page for US customers.
- Smart Exchange Routing: This feature evaluates multiple partner exchanges to route orders for the best available prices. Soon, all orders placed through Smart Exchange Routing will qualify for fee tiers based on 30-day trading volume, with API support coming soon.
- Tax Lots Management: US customers can now view and sell specific tax lots for crypto trades, allowing for more strategic tax planning.
- Advanced Charts: Robinhood is bringing advanced charting tools from Robinhood Legend to mobile, starting with equities and expanding to crypto in August 2025.
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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.