Robinhood Expands Into Crypto: Building Its Own Layer2 and Launching Tokenized Stock Trading

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The zero-commission trading pioneer Robinhood is making bold moves to deepen its footprint in the digital asset space. On June 30, the company unveiled a major strategic expansion—developing its own Layer2 blockchain, launching tokenized U.S. stock trading, and bringing private equity assets on-chain. These developments mark a pivotal shift from traditional brokerage services toward a fully integrated, blockchain-powered financial ecosystem.

This aggressive push positions Robinhood at the forefront of the tokenization revolution—an emerging trend that bridges traditional finance (TradFi) with decentralized finance (DeFi). With these innovations, Robinhood aims to offer users faster settlements, 24/7 market access, and greater control over their assets.

What Is Tokenized Stock Trading?

Tokenized stocks are blockchain-based representations of real-world equities. Each token mirrors the value of an underlying stock—such as Apple or Tesla—and can be traded peer-to-peer without relying on traditional exchanges or intermediaries. These tokens operate on public blockchains, enabling near-instant settlement and reducing counterparty risk.

Robinhood has already rolled out tokenized U.S. stock trading for European users, powered by Arbitrum—a leading Ethereum Layer2 scaling solution. The service offers access to over 200 U.S. stocks and ETFs, available for trading around the clock during business days. This move transforms Robinhood’s European crypto app into a comprehensive, crypto-native investment platform.

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Building a Purpose-Built Layer2 Blockchain

Beyond leveraging existing networks like Arbitrum, Robinhood is constructing its own Layer2 blockchain tailored for asset tokenization. Built using the same open-source stack as Arbitrum, this new network will support key features including:

Although Robinhood hasn’t disclosed an official launch date, insiders suggest the network could go live by late 2025 or early 2026. This custom Layer2 infrastructure signals a long-term commitment to decentralization and scalability, setting the stage for broader financial innovation.

Introducing Tokenized Private Equity: OpenAI and SpaceX Shares

In another groundbreaking step, Robinhood plans to allow retail investors to trade tokenized shares of pre-IPO companies—starting with two of the most sought-after private tech giants: OpenAI and SpaceX.

Historically, access to private equity was restricted to accredited investors and institutional players. By tokenizing these shares, Robinhood democratizes access, enabling everyday users to invest in high-growth startups before they go public.

Each token represents fractional ownership in the underlying company, with value tied to valuation benchmarks and governed by smart contracts. This not only increases liquidity but also enhances transparency and auditability—core principles of blockchain technology.

Why This Matters: The Rise of On-Chain Finance

The concept of tokenizing real-world assets (RWAs) is gaining momentum across the financial industry. From stocks and bonds to real estate and commodities, digitizing physical assets unlocks numerous benefits:

According to a joint report by Ripple and Boston Consulting Group (BCG), the global tokenized asset market could exceed $18.9 trillion by 2033. This projection has spurred intense competition among digital asset platforms—including Bybit, Kraken, and Gemini—all now offering some form of tokenized stock trading.

Even Coinbase is reportedly seeking regulatory approval to enter this space, highlighting the growing legitimacy and demand for blockchain-based financial products.

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Regulatory Collaboration and Market Response

Robinhood’s CEO and Chairman, Vlad Tenev, emphasized the company’s commitment to working closely with regulators during a keynote at Cannes:

"We will continue collaborating with regulators to realize our vision of a fully on-chain Robinhood ecosystem."

This balanced approach—innovating while engaging with compliance frameworks—helps mitigate legal risks and builds trust with both users and authorities.

The market responded positively to the news: Robinhood’s stock (HOOD) surged over 12% on Monday, closing at $93.63—a new all-time high—and climbing further in after-hours trading to $97.24.

Frequently Asked Questions (FAQ)

Q: What are tokenized stocks?
A: Tokenized stocks are digital tokens representing ownership in real-world equities. They are issued on blockchains and mirror the price of the underlying stock, allowing for efficient, transparent, and borderless trading.

Q: Can I trade tokenized stocks 24/7?
A: Yes—unlike traditional markets, tokenized stocks on Robinhood’s platform can be traded nearly around the clock during business days, thanks to blockchain infrastructure.

Q: Is Robinhood’s new Layer2 blockchain live yet?
A: Not yet. Development is underway, with potential launch expected by late 2025 or early 2026.

Q: Are tokenized private equity investments safe?
A: While they offer exciting opportunities, such investments carry risks related to valuation accuracy, liquidity, and regulatory uncertainty. Investors should conduct thorough research before participating.

Q: Which companies’ shares will be tokenized first?
A: The initial offerings will include tokenized shares of OpenAI and SpaceX, two of the most in-demand private tech firms.

Q: How does this affect regular Robinhood users?
A: Over time, these upgrades aim to enhance speed, reduce costs, and expand investment options—especially for those interested in crypto and alternative assets.

The Bigger Picture: A Unified Investment Future

Robinhood’s latest initiatives reflect a broader industry shift toward unified financial platforms where crypto, stocks, ETFs, and private assets coexist seamlessly on-chain. By building its own Layer2 network and embracing asset tokenization, Robinhood isn’t just adapting to change—it’s helping drive it.

As blockchain technology matures and regulatory clarity improves, we’re likely to see more traditional financial instruments migrate to decentralized networks. For investors, this means greater flexibility, faster execution, and unprecedented access to global markets.

👉 Explore the future of finance where borders fade and ownership becomes truly digital.

Core Keywords:

With these strategic advancements, Robinhood is no longer just a stock-trading app—it’s evolving into a next-generation financial gateway powered by blockchain innovation.