Robinhood targets $2 billion US asset trading market in Europe

Robinhood is developing a blockchain network to enable European retail investors to trade tokenised US securities, according to a May 7 Bloomberg report citing industry sources.

The company recently obtained a brokerage license in Lithuania, allowing it to offer investment services across the European Union as part of its expansion plans.

Robinhood aims to leverage blockchain technology to tokenise traditional assets such as stocks, which could reduce costs, increase accessibility, and speed up settlement times compared to conventional trading methods.

Two blockchain projects, Arbitrum (CRYPTO:ARB) and the Solana Foundation, are reportedly competing to partner with Robinhood on this initiative, though no formal agreements have been announced.

Tokenisation involves converting real-world assets into digital tokens that can be traded on a blockchain, potentially transforming how securities are bought and sold.

“You can sit down in front of some software, create a coin and have it be trading in 5 minutes [...] That’s a scary thing. It’s also an incredibly powerful thing if you juxtapose it with how cumbersome the IPO process is,” highlighted Robinhood CEO Vladimir Tenev, emphasising the disruptive potential of blockchain.

The company’s shares rose 2.7% on Nasdaq on May 7 despite reporting an 8.6% revenue decline in the first quarter of 2025, though it still exceeded Wall Street expectations.

Robinhood’s move follows its 2024 acquisition of crypto exchange Bitstamp, further signaling its commitment to blockchain and digital asset markets.

Traditional financial institutions are also exploring blockchain applications, with Banco Santander using blockchain for investor voting since 2018, and JP Morgan developing its own platform called Onyx.