Robinhood is reportedly engaged on blockchain infrastructure that can allow European retail buyers to commerce US securities, Bloomberg Information reported on Might 7.
Based on the report, the brokerage platform is exploring a partnership with a digital asset agency to assist the initiative and is contemplating Arbitrum and Solana as potential blockchain layers.
Folks with direct data of the undertaking mentioned that discussions stay ongoing and that no remaining choice has been made relating to the expertise accomplice or launch timeline.
A spokesperson for Robinhood declined to touch upon the matter. Representatives from Offchain Labs, the developer of Arbitrum, and the Solana Basis additionally didn’t reply to inquiries.
The plan would develop Robinhood’s European choices past crypto buying and selling, representing the complete scope of its companies within the European Union.
In April, Robinhood obtained a brokerage license in Lithuania, authorizing it to supply inventory buying and selling and funding companies throughout the bloc.
The corporate additionally signed an settlement to amass crypto change Bitstamp, a deal nonetheless pending finalization. The acquisition would give Robinhood entry to Bitstamp’s MiFID-licensed multilateral buying and selling facility, opening the door to crypto-linked derivatives within the area.
Blockchain infrastructure for securities buying and selling
The infrastructure below growth would tokenize US equities, permitting them to be represented on a public blockchain and traded by European customers.
Whereas the method continues to be in formation, such a system would supply the potential advantages of near-instant settlement, value reductions, and transparency throughout a commerce’s lifecycle.
Robinhood CEO Vlad Tenev has beforehand expressed assist for tokenized securities. In February, Tenev said in a letter to buyers that he believes that tokenized non-public firm shares resonate finest with US buyers.
By constructing a blockchain-based framework for cross-border securities buying and selling, Robinhood could be positioning itself to compete in a phase that merges conventional equities with digital asset infrastructure.
The selection between Arbitrum and Solana would affect community traits similar to throughput, charges, good contract capabilities, and compatibility with the Ethereum Digital Machine (EVM).
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