Buying and selling platform Robinhood’s crypto income elevated 98% year-on-year to $160 million within the second quarter as CEO Vlad Tenev doubled down on plans to steer the real-world asset tokenization market within the US and overseas.
Whole internet income climbed 45% year-on-year to $989 million, whereas internet revenue elevated by 105% to $386 million, Robinhood mentioned in its earnings assertion on Wednesday.
Regardless of beating Wall Avenue expectations, firm shares barely retraced in after-hours buying and selling.
Crypto volumes additionally elevated 32% within the quarter to $28 billion because the crypto market cap grew 21.7% to $3.36 trillion.
Robinhood needs to tokenize hard-to-reach different property
“We consider tokenization is the most important innovation our trade has seen prior to now decade,” the CEO mentioned after Robinhood late final month rolled out a tokenization-focused layer 2 blockchain — Robinhood Chain — for inventory buying and selling in Europe.
Tenev mentioned Robinhood’s fundamental focus within the US market could be to tokenize different property that have been “beforehand inaccessible.”
“Non-public markets and associated real-world property are alternatives that don’t exist up till now,” and “we’re working with regulators to make that doable.”
Tenev was referring to every part from non-public shares and enterprise capital funds to actual property that has usually been off-limits to retail buyers because of regulatory and liquidity limitations.
It comes virtually two months after Robinhood’s $200 million acquisition of crypto trade Bitstamp, which is about to play a pivotal position within the firm’s tokenization technique.
Robinhood’s tokenization choices have raised authorized considerations
Tenev mentioned he has seen sturdy curiosity from builders eager to tokenize firm property on Robinhood since unveiling the tokenization technique in Cannes, France, late final month:
“Since our occasion, we’ve simply obtained tons and plenty of calls from builders that both wish to tokenize the shares of their very own corporations or in any other case bounce on the tokenization of real-world property revolution and associate with us.”
Robinhood has already issued non-public fairness tokens in Europe that resemble OpenAI and SpaceX shares.
Nevertheless, the tokenization choices not too long ago sparked a authorized inquiry in Lithuania, whereas OpenAI warned that Robinhood’s OpenAI token doesn’t resemble precise fairness within the firm.
Robinhood extra geared up for tokenization, CEO argues
Requested how Robinhood’s tokenization platform would outscale public blockchains, Tenev pointed to the corporate’s 25 million US customers and the $1 trillion in property that they already maintain beneath custody.
“[That] going to be very, very troublesome for others to duplicate,” Tenev mentioned, noting that none of Robinhood’s rivals or blockchain-native companies are “actually going after this particular alternative.”
“There’s plenty of chains on the market that wish to construct the very best chain for degen merchants, however I believe the chance for real-world property and the distinctive traits that they’ve […] I don’t assume anybody else is tackling as straight.”
Associated: eToro to tokenize 100 hottest US shares on Ethereum
Whereas Tenev’s feedback have been directed at layer 2s, Ethereum continues to dominate the crypto tokenization market, securing practically $7 billion value of real-world property, RWA.xyz information reveals.
Ethereum layer 2 ZKsync Period is available in second with $2.4 billion, accounting for a close to 19% market share.
Journal: Will Robinhood’s tokenized shares REALLY take over the world? Professionals and cons
