Robinhood Explores Blockchain Platform for European U.S. Securities Trading

• Shares rose 2% post-report; success hinges on navigating EU-U.S. securities rules and user adoption.
• Blockchain integration aims to modernize trading, cut costs, and expand access beyond current crypto offerings in Europe.

Robinhood is developing a blockchain-based system to let European users trade U.S. stocks, according to a Bloomberg report citing unnamed sources. The platform, which could involve Layer 2 network Arbitrum , would mark Robinhood’s first move to expand stock trading beyond U.S. borders while leveraging blockchain technology.

The project may require collaboration with a digital asset firm, though Robinhood has not confirmed specific partners. Arbitrum, a scaling solution for Ethereum, is reportedly under consideration. If finalized, the partnership would enable faster, lower-cost transactions compared to traditional stock trading systems.

Robinhood’s crypto division has seen mixed results recently . While its first-quarter crypto trading volume reached $46 billion—a 28% increase from 2023—activity dipped from the prior quarter. April volumes fell to $8 billion, below the $15 billion monthly average earlier this year. The company attributed fluctuations to shifting market conditions.

European users currently cannot trade U.S. equities on Robinhood, but the platform has offered crypto trading in the region since 2023. Shares rose 2% to $49.67 following the report, reflecting cautious optimism among investors. ETHNews analysts suggest blockchain integration could reduce operational costs and attract users seeking alternatives to conventional brokerage services.

Regulatory hurdles remain, particularly around cross-border securities compliance. Robinhood’s ability to navigate these rules while maintaining its trademark simplicity will determine whether the project gains traction. For now, the proposal underscores a growing trend: traditional finance firms experimenting with blockchain to modernize outdated systems.