Will Robinhood’s Tokenized Stocks Kill the Old Market Model?
Robinhood is quietly setting the stage for what might become one of the most disruptive shifts in modern finance: bringing stock trading fully onchain.
The popular trading platform is developing a new blockchain infrastructure that could upend how — and when — equities are bought and sold.
The new network, named Robinhood Chain, is being built on Arbitrum’s Orbit framework. It will allow users to interact with tokenized representations of real-world stocks, enabling trades outside traditional market hours. This means anyone, anywhere, could potentially buy and sell stock derivatives around the clock — bypassing the restrictions of Wall Street’s legacy systems.
The project involves issuing tokens backed by actual securities held by licensed broker-dealers. These tokens would offer not just constant access but near-instant settlement, along with the ability for users to hold the assets themselves or engage through decentralized apps.
According to research from Galaxy Digital, the implications are far-reaching. If a significant portion of trading shifts to these decentralized environments, incumbent exchanges like the NYSE could lose both trading volume and revenue from fees and data. The model mirrors that of Coinbase’s Base chain, where the operator controls the sequencer and captures transaction fees — a structure that’s already generating six-figure daily profits for Coinbase.
But beyond financial efficiency, the technology opens the door to programmable assets. Stocks could one day be used in DeFi as collateral, tied to smart contracts for automated dividends, or integrated into more advanced trading systems — things traditional equities simply can’t offer.
Still, the road ahead isn’t without obstacles. Regulatory uncertainty in the U.S. is a major wildcard. For now, Robinhood’s tokenized offerings are only available in Europe. There’s also the potential risk for heightened price swings during off-hours trading, particularly for retail investors.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
