Robinhood Launches EU Tokenized Stocks on Arbitrum Layer-2
Robinhood has launched tokenized stocks and ETFs for EU customers on Arbitrum’s layer-2 blockchain, offering over 200 US equity and ETF tokens backed 1:1 by custodial reserves. These digital tokens mirror real share prices, pay dividends in-app and trade 24/7 without residency, tax or currency barriers. Following the rollout, HOOD shares climbed 3% to $94.65—within 4% of their record high—boosting market cap beyond $82 billion. In Q1 2025, Robinhood reported a 50% revenue rise to $927 million, propelled by crypto and blockchain services. The firm plans a US-focused onchain Real World Asset Exchange and faces regulatory reviews, including Lithuania’s central bank probe into private equity tokens. Private companies are also seeking access to tokenized stocks, underscoring growing demand. This development highlights deeper blockchain integration in traditional finance and may drive secondary market activity and asset price gains.
Bullish
This news is bullish for ARB and the Arbitrum network. The launch of tokenized stocks on Arbitrum is likely to increase transaction volumes and demand for ARB to pay gas fees. In the short term, growing EU user activity and market interest could drive ARB price gains through higher network utilization. Over the long term, deeper integration of traditional financial assets on Arbitrum can solidify its position as a leading layer-2 solution, supporting sustained demand for ARB and strengthening network value.