Robinhood doubles down on crypto with its own blockchain, 24/7 trading and tokenised stocks
Read more: Crypto live prices
The move marks a pivotal moment for the fintech company as it looks to merge the fast-evolving world of blockchain with traditional finance.
Speaking to Yahoo Finance Future Focus, Robinhood crypto senior vice president and general manager Johann Kerbrat explained how the platform is leveraging blockchain technology to overhaul outdated systems and offer investors something different.
At the heart of Robinhood's European expansion is the launch of tokenised US stocks and ETFs, digital representations of real equities issued on the blockchain.
These 'stock tokens' allow users across 31 European countries to trade more than 200 US stocks and ETFs, including heavyweights like Apple (AAPL), Microsoft (MSFT), and Tesla (TSLA), without paying any commission or spread fees. Robinhood applies a 0.10% foreign exchange fee.
"Right now, what we're launching in Europe is that EU customer will have access to 200 plus US stocks and ETF tokens, and the stock token holder will also be able to receive dividends directly into their app," Kerbrat said.
It means European users can gain exposure to the US market, something that can be expensive due to regulatory barriers and foreign exchange costs, while also receiving dividend payouts like traditional shareholders.
Read more: Why UK can leapfrog EU and US on crypto, according to Coinbase exec
While the tokenised shares are synthetic representations backed by financial instruments, the user experience is nearly indistinguishable from trading traditional stocks. "It's less about trading a crypto product. It's more about using the benefit of crypto to get the improvement through it," Kerbrat said.
Tokenisation, converting real-world assets into digital tokens that live on a blockchain, has been hailed as one of crypto's most promising innovations. BlackRock (BLK) CEO Larry Fink recently called it the 'next generation for markets.'
For Robinhood, tokenising stocks isn't just about tech hype, it's about efficiency gains.
"We've been vocal about the fact that we believe the traditional finance system is a bit outdated, and doesn't match how people are using products now, nowadays," said Kerbrat. "We think the blockchain will actually improve efficiencies, reduce time to wait, reduce fees and cost for the customer."
Read more: Why bitcoin and gold are rallying as bond yields hit 30-year highs
The benefits? Lower fees, faster settlement times, and eventually, the potential for 24/7 trading. "You can imagine a world where people can self custody the asset, they can trade them on defi, 24/7," Kerbrat said. "So I think for us it's a it's a key moment in the financial system, and we'll be able to really build on top of that."
To support this new tokenised financial world, Robinhood is building its own Layer 2 blockchain, powered by Ethereum and based on the Arbitrum stack.
Layer 2 blockchains are built on top of existing blockchain networks like Ethereum to boost speed and scalability while lowering transaction costs.
Robinhood's in-house chain will eventually become the infrastructure behind its tokenised stock platform, enabling features like 24/7 trading, seamless bridging of assets, and self-custody for users.
"We're already excited to build our own Robinhood layer two blockchain. It's going to be built on top of Ethereum using the Arbitrum stack," said Kerbrat. "We want the blockchain to be optimised for tokenised real world assets, you know, to have built in support for 24/7 trading, bridging, self custody, all the things that really matter for customers."
While European users get access to tokenised stocks and crypto perpetual futures, American users are now being offered something long-requested — crypto staking. Starting with ethereum and solana, US customers can now stake their assets directly in the Robinhood app.
Staking allows users to contribute to the security of blockchain networks in return for earning rewards, sort of like earning interest for locking up your crypto.
"So really, what it means for staking is you are contributing to the network, not just to trade the assets, but also to help secure the network, and all the assets that are staked are used to validate the transaction," said Kerbrat.
"When the customer will be staking their assets, they will be able to see directly the reward estimated for the period of time. And on a regular basis, they will receive a new reward, and they can decide to invest with it, or just to stake them again."
The move comes as discussions heat up around whether ethereum staking should be allowed in spot ETFs. While regulators debate, Robinhood is already rolling out staking in a user-friendly interface designed to demystify the process.
Robinhood is also offering crypto perpetual futures to users in the EU, a first for the company. This new feature lets experienced traders make bigger bets on the price of cryptocurrencies by using leverage, meaning they can trade with more money than they actually have.
These trades are handled through the Bitstamp exchange, but Robinhood has designed a user-friendly interface to make things like leverage and risk easier to manage.
Read more: 6 crypto developments in 2025 that will keep fuelling bitcoin's rally
Kerbrat emphasised that despite the blockchain complexity behind the scenes, the interface remains clean and accessible for both tokenised stocks and traditionally traded equities.
"When you're going to use the app, if you're a user from New York or a user from the EU, it will really look similar, except that on the EU app, it will tell you at the top that this is a token, and if you tap on it will give you all the explanation about the differences, but the actual trading experience will be really similar," Kerbrat said.
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