June 30 (Reuters) - Robinhood said on Monday it
has launched tokens that will allow its customers in the
European Union to trade more than 200 U.S. stocks and
exchange-traded funds, including Nvidia ( NVDA ), Apple ( AAPL )
and Microsoft ( MSFT ).
The commission-free tokens can be traded around-the-clock,
five days a week, the trading platform said on Monday. They will
be issued through a partnership with blockchain firm Arbitrum.
With the move, Robinhood stands to benefit from rising
global interest in the U.S. stock market - home to some of the
world's most influential tech giants and leading beneficiaries
of the AI boom.
Tokenized equities mix traditional finance with crypto-like
trading, and have been gaining traction among international
investors due to the better access, flexible trading hours and
lower costs.
Experts believe such tokens could dramatically alter the
securities investing landscape. In a January opinion piece for
The Washington Post, Robinhood CEO Vlad Tenev wrote tokenization
could also open the door for retail investors to access private
companies' stocks.
Menlo Park, California-based Robinhood plans to eventually
develop its own blockchain that will expand trading hours for
tokens to 24/7 from 24/5 currently, it said.
Last month, crypto exchange Kraken also launched
equities-linked tokens for non-U.S. investors.
EXPANDING CRYPTO TOOLS
Robinhood also announced several new product offerings,
including crypto perpetual futures for its EU customers and
staking for U.S. users.
The perpetual futures will allow users to make leveraged
bets on the prices of cryptocurrencies. Unlike traditional
futures, they have no expiry date.
Rival Coinbase will also begin offering similar
tools to U.S. customers from next month.
Meanwhile, staking lets customers lock up their
cryptocurrency to help validate transactions on the blockchain,
earning rewards in return.
The practice had been controversial in recent years, until
the Securities and Exchange Commission's staff last month said
some forms of staking are not securities offerings.