Executive Summary
Robinhood CEO and co-founder Vlad Tenev has articulated a vision for the complete convergence of cryptocurrency and traditional finance, driven by the advancement of tokenization technology. Tenev stated at Token2049 Singapore that tokenization is set to "eat the entire financial system," leading to a full merger where crypto becomes the underlying infrastructure for all tradable assets. In line with this strategic outlook, Robinhood has initiated the rollout of tokenized US stocks and ETFs for eligible customers in the European Union, simultaneously announcing the development of its own Layer 2 blockchain optimized for real-world asset tokenization. This move positions Robinhood at the forefront of integrating digital assets into mainstream investment, while Tenev critically highlighted the need for the United States to accelerate its regulatory framework for digital assets to remain competitive with international jurisdictions like the European Union.
The Event in Detail
At Token2049 Singapore, and further elaborated on "Bloomberg The Close," Vlad Tenev detailed his conviction that crypto and traditional finance are on a trajectory to fully merge. He underscored that tokenization, the digital representation of real-world assets on blockchain technology, will underpin every tradable asset, from public and private stocks to real estate. Robinhood’s strategy reflects this belief, with the company actively expanding its crypto-powered offerings.
In the European Union, Robinhood has launched US stock and ETF tokens, providing eligible customers with exposure to over 200 US equities. These Robinhood Stock Tokens offer zero commissions or added spreads from Robinhood, include dividend support, and provide 24/5 access. This expansion transforms Robinhood’s European application from a crypto-only platform into an all-in-one investment app. Initially issued on Arbitrum, these tokenized stocks are part of a broader plan to migrate to Robinhood’s proprietary Layer 2 blockchain, currently under development. This custom blockchain, based on Arbitrum technology, is designed for 24/7 trading, seamless bridging, and self-custody of tokenized real-world assets. Johann Kerbrat, GM and SVP of Robinhood Crypto, emphasized the goal of onboarding the world to crypto by creating an intuitive and accessible platform.
Beyond tokenized stocks, Robinhood is also introducing crypto perpetual futures in the EU, offering eligible customers access to derivatives with continuous exposure and up to 3x leverage. In the US, the company is rolling out crypto staking for assets like Ethereum and Solana, following updated SEC guidance clarifying that staking no longer inherently involves securities laws. Further product enhancements include a credit card with crypto cashback, a 1% boost on crypto deposits, and "tax lots" features for optimizing capital gains on digital assets.
Market Implications
Deconstructing the Financial Mechanics
Tokenization fundamentally alters the mechanics of asset ownership and trading. By converting traditionally illiquid assets such as real estate or private equity into digital tokens on a blockchain, it introduces several efficiencies. These include greatly enhanced liquidity, as fractionalized assets can be traded globally and continuously; improved efficiency through automated transactions via smart contracts, reducing the need for intermediaries and lowering transaction costs; and increased transparency due to blockchain’s immutable record-keeping. The ability to trade assets 24/7 and achieve substantially faster settlement times means transactions can be less capital and liquidity intensive, removing geographical constraints and expanding the potential investor pool. These attributes are central to Tenev's prediction of crypto becoming the infrastructure layer for a merged financial system.
Business Strategy & Market Positioning
Robinhood’s aggressive push into tokenization, particularly in the EU, represents a significant strategic pivot. By transitioning its European app into an "all-in-one investment app powered by crypto," Robinhood is positioning itself as a pioneer in bridging traditional finance with the nascent digital asset economy. This move aims to leverage the benefits of blockchain technology to offer superior user experience, expanded asset access, and improved trading functionalities compared to traditional brokerage models. The development of a dedicated Robinhood Layer 2 blockchain underscores a long-term commitment to owning the underlying technology and infrastructure for real-world asset tokenization, potentially creating a significant competitive advantage in the evolving financial landscape.
Broader Market Implications
The trajectory outlined by Vlad Tenev signals a profound shift for the broader Web3 ecosystem and global financial markets. The expansion of tokenized real-world assets (RWAs) is gaining momentum, with major financial institutions like BlackRock, Ripple, and Goldman Sachs already launching or pursuing their own tokenization projects, including funds tokenizing US Treasuries and real estate. McKinsey & Co. estimates that the market capitalization of tokenized funds could approach $2 trillion by 2030, excluding cryptocurrencies and stablecoins, indicating substantial growth potential.
This trend is fostering increased interoperability and competition, as evidenced by Robinhood
source:[1] 'Tokenization is Going to Eat the Entire Financial System' Says Robinhood CEO (https://www.coindesk.com/policy/2025/10/02/to ...)[2] Robinhood's Tenev Sees Crypto and Finance Merging - YouTube (https://vertexaisearch.cloud.google.com/groun ...)[3] Robinhood Launches Stock Tokens, Reveals Layer 2 Blockchain, and Expands Crypto Suite in EU and US with Perpetual Futures and Staking (https://vertexaisearch.cloud.google.com/groun ...)
Edgen Crypto·Oct 02 2025, 02:55
