Robinhood is expanding into Europe, using blockchain technology to provide 24/7 access to tokenised US stocks. This shift could revolutionise the retail investment landscape, offering lower fees and fractional shares. However, key decisions, including blockchain platform choice and regulatory concerns, will be critical to its success.
Robinhood, the popular retail trading platform, is now setting its sights on European markets with a bold new strategy: leveraging blockchain technology to provide round-the-clock access to tokenised US stocks. This bold step positions the company to take a leading role in the digital transformation of global financial markets.
This decision comes at a pivotal time when regulatory changes in the United States are pushing for a more crypto-friendly framework. With the new SEC Chairman, Paul Atkins, advocating for pro-crypto policies, the regulatory environment is becoming more conducive to platforms like Robinhood. According to Osama Bari, Chief Technology Officer at D24 Fintech Group, this expansion is a clear signal of a growing global race to democratise stock trading and transform retail investor access to financial markets.
Robinhood’s vision for blockchain-based trading
Robinhood’s European foray into blockchain-based trading could redefine how everyday investors access US stocks. The company is targeting low-cost, 24/7, cross-border trading through tokenisation—a move that would allow fractional ownership of high-priced stocks and offer flexible trading times that traditional exchanges cannot provide. By using blockchain to offer tokenised assets, Robinhood could cut down on fees, reduce settlement times, and lower transaction costs, potentially saving the global financial system up to $20 billion annually in settlement and delivery costs, as reported by the Global Financial Markets Association.
Despite the clear benefits, the decision on which blockchain infrastructure to use is crucial. Osama Bari, CTO of D24 Fintech Group, highlights that Robinhood must choose between Solana and Arbitrum—two different blockchain platforms with distinct advantages and challenges. “Solana offers speed and low fees, but its past stability issues could present risks in financial applications. Arbitrum, with Ethereum’s security, has a more robust ecosystem but lacks Solana’s transaction speed and fee efficiency,” explains Bari. The choice of platform will impact the success of Robinhood’s European venture, particularly in the fast-paced world of high-frequency trading.
Regulatory and trust considerations for European expansion
Robinhood’s success in Europe will not solely depend on technological innovation. Trust-building with European investors is essential, especially as blockchain-based equity trading is still unfamiliar to many. Bari notes that the evolving regulatory frameworks for tokenised securities in the US and Europe will play a significant role in shaping the platform’s growth. He also points to SEC Chairman Paul Atkins’ ongoing push for clarity on token rules and self-custody rights, which will likely reduce legal risks for platforms like Robinhood. “As regulation warms and tokenisation matures, the question isn’t if retail investing will move to the blockchain—it’s when,” Bari adds.
Building trust is essential for Robinhood’s European expansion. While blockchain-based securities offer exciting possibilities, the complexities of regulation and the adoption of new technology could slow the transition. European users may need time to familiarise themselves with the concept of tokenised assets, but as regulatory clarity emerges, the landscape for blockchain-based investing will become more robust.
Robinhood’s blockchain expansion is more than just a European play; it represents the broader future of retail investing on a global scale. With institutional giants like BlackRock and VanEck already rolling out blockchain-based funds, Robinhood’s move could serve as a model for other financial players, setting the tone for the future of capital markets. As blockchain technology matures, it will bring easier, cheaper, and more transparent investment opportunities to a global audience, transforming the financial system into a more open and democratic ecosystem.
About D24 Fintech Group
D24 Fintech Group is a global leader in developing innovative technological solutions for the rapidly evolving fintech sector. With a focus on improving transactional security, streamlining digital payments, and enhancing operational efficiency, D24 Fintech Group is committed to shaping the future of digital finance.
Operating in over 100 countries, the company leverages emerging technologies to create integrated solutions and services that redefine industry standards and drive innovation in the fintech ecosystem.
Shikha Negi is a Content Writer at ztudium with expertise in writing and proofreading content. Having created more than 500 articles encompassing a diverse range of educational topics, from breaking news to in-depth analysis and long-form content, Shikha has a deep understanding of emerging trends in business, technology (including AI, blockchain, and the metaverse), and societal shifts, As the author at Sarvgyan News, Shikha has demonstrated expertise in crafting engaging and informative content tailored for various audiences, including students, educators, and professionals.
