Robinhood Unveils Tokenized U.S. Stock Trading in EU

The European Union customers of Robinhood can now trade tokenized versions of more than 200 U.S. stocks and ETFs including Nvidia, Apple and Microsoft through the blockchain-based service launched by the company. The announcement caused Robinhood stock prices to rise 5.5% to reach their highest point ever.

The tokens issued through Arbitrum blockchain enable EU investors to trade 200+ U.S. stocks and ETFs including Nvidia, Apple and Microsoft during 24/5 hours. The company plans to transition its trading operations to a 24/7 model using its own blockchain system.

International investors have started adopting tokenized equities because they provide affordable and flexible ways to access U.S. market investments. Robinhood CEO Vlad Tenev supports tokenization because it enables investors to access broader investment opportunities including private company shares.

EU users of Robinhood can now access perpetual futures trading which allows them to place leveraged bets on cryptocurrencies. The staking service became available to U.S. customers who can earn rewards through validating blockchain transactions by locking up their cryptocurrency.

The new offerings from Robinhood appear during a time when the company faces rising competition from Coinbase and Kraken because these rivals introduced token and futures products. The new service represents Robinhood's ongoing effort to expand its services beyond stock trading while building its position as a financial institution that connects traditional finance with digital assets.