Robinhood Markets (NASDAQ:HOOD) rolled out a bold new push into tokenized equities on Monday (June 30), announcing the launch of commission-free stock tokens for EU customers.
The Menlo Park-based brokerage said the tokens will trade 24 hours a day, five days a week, via a partnership with blockchain firm Arbitrum. Robinhood also revealed plans to expand the service to “thousands” of stock tokens by the end of the year and to eventually develop its own blockchain to enable full 24/7 trading.
Robinhood surged nearly 13 percent to an all-time high of US$93.63 on Monday after the announcement.
“Tokenization is going to open the door to a massive trading revolution,” Robinhood CEO Vlad Tenev said at the company’s keynote event, held in Cannes, France.
In a significant first, Robinhood also introduced tokenized shares linked to private companies — specifically Sam Altman’s OpenAI and Elon Musk’s SpaceX — which will be made available exclusively to EU customers.
To mark the launch, Robinhood is offering 5 euros worth of OpenAI and SpaceX stock tokens to every eligible EU user who joins the platform by July 7. Altogether, the company has earmarked US$1 million worth of OpenAI tokens and US$500,000 worth of SpaceX tokens for the incentive program.
Johann Kerbrat, Robinhood’s general manager and senior vice president of crypto, said the move reflects a desire to break open traditionally exclusive investment opportunities.
“We wanted to make sure we were giving access,” he said in Cannes.
“What we discussed on stage was how to address the inequality between people who have historically had access to these kinds of companies and everyone else. That’s the really exciting part: Now everyone will be able to get it.”
He added: “The goal with tokenization is to let anyone participate in this economy.”
Access to private equity has historically been limited to institutional or ultra-wealthy investors, but the EU’s more flexible regulatory environment allowed Robinhood to move quickly.
The tokenized shares will be distributed directly into users’ Robinhood custody wallets and support dividend payments, the company said, promising the same ownership and rights as traditional shares.
Robinhood’s effort reflects growing enthusiasm around so-called tokenized equities, which merge the advantages of traditional finance with blockchain-powered flexibility and low costs.
The model allows round-the-clock trading, fractional ownership, and lower barriers to entry.
Still, regulatory uncertainties cloud the future of tokenized equities, especially in the United States, where definitions around securities and investor protection rules remain unresolved.
Robinhood execs made clear that US customers should not expect to see similar private equity tokens anytime soon. The company is lobbying for more open frameworks to let retail US users participate in private equity markets.
For now, Robinhood will continue rolling out tokenized assets in the EU and expand to other jurisdictions as rules evolve.
Robinhood also announced crypto perpetual futures for its EU users, as well as the launch of crypto staking for US customers.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.