Robinhood, the platform that rocked the world of brokerage with trade without commission, aims to disrupt cross-border investment. Sources, as indicated for the first time by Bloomberg, reveal that the company actively develops a platform based on blockchain which could soon allow retail investors through Europe to exchange tokénized versions of popular American actions.
Instead of relying on inherited systems and intermediaries which often swell costs and slow down the settlement times, Robinhood explores the efficiency and transparency offered by the blockchain. By representing the property of American actions as digital tokens on a large distributed book, the company aims to rationalize the entire trading process for its European users.
While the details of the underlying blockchain technology are still under Wraps, whispers point to potential partnerships with players established in cryptographic space. Arbitrum, a solution designed to make transactions Ethereum faster and cheaper, and Solana, a high performance blockchain known for its speed and scalability, is being executed.
Robinhood European expansion efforts have been underway. The company recently obtained a crucial brokerage license in Lithuania, signaling its intention to offer a wider range of investment services beyond cryptocurrencies currently available for its users of the EU. In addition, the acquisition during the crypto bitstamp of exchange could provide Robinhood with the infrastructure and the regulatory framework necessary to offer even more sophisticated digital asset products in the future.
The vision behind tokenizing titles is not specific to Robinhood. Financial giants like Blackrock and Franklin Templeton have already plunged their toes into this space, recognizing the potential transformer of blockchain in the management of assets. The ability to split up ownership, increase liquidity and potentially reduce settlement times is convincing advantages that traditional finance is increasingly recognizing.
