Robinhood is reportedly developing blockchain infrastructure that will enable European retail investors to trade US securities, as reported by Bloomberg News on May 7. The brokerage platform is exploring a potential partnership with a digital asset firm to support this initiative and is considering Arbitrum and Solana as potential blockchain layers. Sources familiar with the project indicate that discussions are ongoing, and no final decisions have been made regarding the technology partner or launch timeline. A Robinhood spokesperson declined to comment, while representatives from Offchain Labs (Arbitrum’s developer) and the Solana Foundation did not respond to inquiries.
Key Developments
This plan would expand Robinhood’s European offerings beyond crypto trading, representing the full scope of its services in the European Union. In April, Robinhood obtained a brokerage license in Lithuania, authorizing it to offer stock trading and investment services across the bloc. The company also signed an agreement to acquire crypto exchange Bitstamp, a deal still pending finalization. The acquisition would give Robinhood access to Bitstamp’s MiFID-licensed multilateral trading facility, potentially opening the door to crypto-linked derivatives in the region.
Blockchain Infrastructure for Securities Trading
The infrastructure under development would tokenize US equities, allowing them to be represented on a public blockchain and traded by European users. This system could offer benefits such as near-instant settlement, cost reductions, and transparency across a trade’s lifecycle. Robinhood CEO Vlad Tenev has previously expressed support for tokenized securities, stating in a February letter to investors that he believes tokenized private company stocks resonate best with US investors.
Competitive Positioning
By building a blockchain-based framework for cross-border securities trading, Robinhood is positioning itself to compete in a segment that merges traditional equities with digital asset infrastructure. The choice between Arbitrum and Solana will influence network characteristics such as throughput, fees, smart contract capabilities, and compatibility with the Ethereum Virtual Machine (EVM).
