Robinhood’s aggressive expansion into blockchain technology and digital asset tokenization has propelled its stock to remarkable heights, with shares climbing nearly 30% over the past month. The popular trading platform’s stock reached $94.65 during Wednesday’s trading session, positioning it just 4% below its all-time closing record established in early July. This impressive rally has pushed Robinhood’s market capitalization beyond $82 billion, with year-to-date gains exceeding 137% as investors embrace the company’s innovative approach to modernizing financial services.
The momentum accelerated significantly following Robinhood’s late June announcement of a tokenization-focused layer-2 blockchain built on Arbitrum infrastructure. This technological advancement enables the platform to offer tokenized US stocks and exchange-traded products to European investors, marking a significant expansion of its international reach. Additionally, Robinhood has proposed establishing the Real World Asset Exchange within the United States, creating a platform specifically designed for onchain settlement of tangible assets and further cementing its position in the evolving digital finance landscape.
While investors have responded positively to Robinhood’s tokenization strategy, regulatory authorities in Europe have expressed concerns about certain offerings. Lithuania’s central bank, serving as Robinhood’s primary European regulator, has requested detailed information regarding the platform’s tokenized equity products linked to high-profile private companies including OpenAI and SpaceX. These products, which CEO Vlad Tenev clarifies function more like derivatives providing indirect exposure rather than traditional equity offerings, have attracted significant attention from both investors and regulators.
The success of Robinhood’s tokenization initiatives has generated substantial interest from private companies seeking to make their equity more accessible to retail investors. During a recent Bloomberg interview, Tenev revealed that numerous private firms have approached Robinhood about creating similar tokenized products to those already offered for SpaceX and OpenAI. This growing demand, combined with the platform’s strong financial performance including a 50% year-over-year revenue increase to $927 million in the first quarter, suggests that Robinhood’s blockchain-focused strategy is resonating with both institutional partners and individual investors despite ongoing regulatory scrutiny.
