On Monday Robinhood announced the launch of digital tokens allowing its European Union customers to invest in over 200 US-listed stocks and funds, including Nvidia, Apple, and Microsoft. These tokenized securities, which can be traded commission-free, will be available 24 hours a day, five days a week.

This initiative marks a major step forward in the integration of traditional finance with blockchain technology, which aims to attract an international clientele which is increasingly eager to access the US stockmarket giants, which are the main beneficiaries of the rise of artificial intelligence.

Robinhood said the tokens would be issued in partnership with Arbitrum, a blockchain company. The announcement sent Robinhood's stock to a record high, rising nearly 10% during trading.

The platform also plans to issue tokens backed by shares in unlisted companies, starting with OpenAI, led by Sam Altman, and SpaceX, founded by Elon Musk. The announcement was made at a company event held in France.

"The tokenization phenomenon will pave the way for a massive revolution in trading," said CEO Vlad Tenev. Robinhood plans to expand its token offering to "thousands" of securities by the end of the year. In the longer term, the Menlo Park, California-based company plans to create its own blockchain to extend the trading of its tokens to continuous availability, 24 hours a day, 7 days a week, from five days at present.

A question about regulation?

Stock tokens are attracting more and more international investors, who are drawn by greater accessibility, extended trading hours, and lower fees. However, in the United States, these products remain in a regulatory gray area, with no clearly defined legal framework.

In Europe, Robinhood has obtained a brokerage license in Lithuania and is developing its blockchain activities following the acquisition of Bitstamp, a MiFID-licensed cryptocurrency exchange platform that allows it to offer financial instruments such as tokens backed by US stocks. Everything seems to be in place for Robinhood to offer its new service.

Robinhood is not alone in this niche: in May, the Kraken platform also launched stock-backed tokens for non-US investors.

New offensive on cryptocurrencies

At the same time, Robinhood has announced several new features for its crypto customers. European users will have access to perpetual futures contracts on cryptocurrencies, allowing them to speculate with leverage on the prices of digital assets. Unlike traditional futures contracts, these products have no expiry date.

Robinhood will also offer "staking" to its US customers. This practice involves locking up cryptocurrencies to validate transactions on the blockchain in exchange for rewards. Long controversial, it has recently gained legitimacy after the SEC ruled last month that certain forms of staking do not constitute offers of securities.

Coinbase, one of Robinhood's main competitors, plans to launch similar tools for its US customers as early as next month.