Robinhood expands its tokenization drive on Arbitrum, bringing its total tokenized assets to nearly 500 for EU customers.
Robinhood has significantly expanded its tokenization initiative now. Specifically, it deployed 80 new stock tokens onto the Arbitrum blockchain recently. The move takes the platform’s total tokenized assets to almost 500 now. Furthermore, this is part of a larger initiative underway at a rapid pace. Ultimately, the aim is to successfully move to an integrated investment hub.
Tokenized Assets Surpass $8.5 Million in Total Value
According to statistics from Dune Analytics, the project is growing quickly. Therefore, Robinhood has currently successfully tokenized 493 assets. Today, these assets are worth more than $8.5 million. Furthermore, the mint volume has exceeded $19.3 million overall. However, this is balanced out to the tune of about $11.5 million in burning activity at present.
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This balance indicates an emerging but successfully traded market. In particular, the recent wave of tokenized assets is worth mentioning currently. New renderings of the deployments were publicly confirmed by research analyst Tom Wan. The new additions are Galaxy (GLXY), Webull (BULL), and Synopsys (SNPS). As a result, these tokens can now be accessed by all Robinhood EU users.
Furthermore, these tokens are currently derivatives. In particular, they closely follow the price of publicly traded US securities. More importantly, they do not stand for direct ownership for the user. However, Robinhood holds the underlying stock that represents the tokens directly.
The tokens also enable users to invest from a low of 1 euro, currently. In the end, tokenization has given Robinhood EU users access to more US stocks. This means effectively various US Equities and ETFs. Therefore, this opens up the investment opportunities for European clients drastically.
Migration to Proprietary Blockchain Planned Amid Regulatory Scrutiny
It has only naturally generated regulatory interest now, after it has gone live at a rapid pace. In particular, the Bank of Lithuania has referred for clarification immediately. This bank is the regulator of Robinhood in the EU. More specifically, the question was how the structure of the tokens is complete. Furthermore, it focused on tokens that are similar to private ventures such as OpenAI today.
Also, OpenAI has now published an open warning. Specifically, they made it clear that these tokens are not equity in their company. Hence, Robinhood must tread carefully in this regulatory environment. Currently, these tokens are minted on the layer 2 Arbitrum network. However, a move is finally in the future for Robinhood.
In the end, all stock tokens are to be transferred to their Layer 2 blockchain. Additionally, this proprietary chain is developed actively on Arbitrum’s core technology. More precisely, this chain is being successfully optimized for efficiently handling tokenized Real World Assets (RWAs). Thus, it is designed to facilitate round-the-clock trading as well.
The proprietary chain will also allow for seamless bridging and self-custody today. Furthermore, this tokenization push is in line with Robinhood’s overall strategy at this point. As such, the company wants to increase its presence in the global crypto arena to a greater extent. Thus, this change is revolutionizing the European application successfully.
In conclusion, Robinhood is aggressively pursuing its tokenization strategy in the present. This is important for its future development and growth in overseas markets.
Source: https://www.livebitcoinnews.com/crypto-news-robinhood-nears-500-tokenized-assets-on-arbitrum/
