Robinhood Tokenized Nears 500 U.S. Stocks and ETFs on Arbitrum for EU

Robinhood Tokenized Stocks Expand to Nearly 500 Assets

Robinhood has expanded its tokenization initiative on the Arbitrum blockchain. Robinhood Tokenized The financial service company now offers European Union investors nearly 500 tokenized U.S. stocks and exchange-traded funds (ETFs). 

In the past few days, Robinhood added around 80 new stock tokens. This brought the total count of tokenized assets to 493 with a combined on-chain market value of over $8.5 million. These tokens mirror the prices of popular U.S. equities, allowing European users to gain exposure to American markets through crypto.

Expanding On-Chain Stock Offerings

Robinhood launched its Arbitrum-based stock trading network in June. There were just over 200 tokenized securities. This has more than doubled that selection within a few months.

According to Dune Analytics data, cumulative token issuance now stands at about $19.3 million, offset by roughly $11.5 million in tokens burned as users redeem or sell them. Approximately 70% of the nearly 500 tokens are individual stocks, and 24% are ETFs; the rest include commodities and crypto-linked funds.

Recent additions to the lineup range from crypto-sector firms to tech companies. The latest batch of tokenized equities includes names like Galaxy Digital (GLXY), online brokerage Webull (BULL), and software company Synopsys (SNPS). 

“Robinhood EU users now have a wider range of US stocks, equities, and ETFs, thanks to tokenization,” noted research analyst Tom Wan as the new tokens went live. The expansion signals growing demand for access to U.S. markets via blockchain-based assets.

How Tokenized Stocks Work on Arbitrum

Robinhood’s stock tokens are blockchain-based derivatives designed to track the price of U.S. securities without conferring actual share ownership. Each token operates under the EU’s MiFID II regulations as a derivative contract (similar to a CFD) that mirrors the underlying stock’s performance. The company says the real shares are held by a licensed U.S. custodian to fully back each token’s value.

European customers can trade these tokens on Robinhood’s platform with several advantages. Trades are commission-free (apart from a 0.1% forex fee) and can be executed 24 hours a day, five days a week. Investors can start with as little as €1, enabling fractional ownership of high-priced stocks. Token holders also receive any dividends the underlying company pays, delivered in-app just like a regular shareholder’s payout.

Notably, the tokenized stocks currently trade only within Robinhood’s custody. The company has indicated plans to enable self-custody in the future so users can withdraw the tokens to external crypto wallets.

Regulatory Scrutiny and Compliance

Robinhood’s foray into tokenized equities has drawn attention from European regulators. In July, the Bank of Lithuania, which oversees Robinhood’s EU operations, requested clarification on how the stock tokens are structured and compliant with financial regulations. Robinhood maintains that the product is MiFID II compliant and welcomes the review. The platform notes that the stock tokens are offered as regulated derivatives and that a “US-licensed institution” holds the underlying assets. 

One point of contention was the tokenization of private companies like OpenAI and SpaceX. OpenAI publicly warned that it had no affiliation with the offering and that any sale of OpenAI equity was not approved. This episode highlighted the legal sensitivities around tokenizing illiquid, privately held assets.

To avoid pitfalls faced by less-regulated platforms, Robinhood operates fully within the law. Its European subsidiary is licensed in Lithuania as an investment firm and recently obtained a crypto asset registration under the EU’s MiCA rules. This regulated approach contrasts with Binance’s attempt at stock tokens in 2021, which was shut down after regulators warned the exchange was offering securities without authorization. By working with regulators, Robinhood aims to set a compliant model for bringing stocks on-chain.

Robinhood’s Crypto Expansion and Industry Trends

The tokenized stock initiative is part of Robinhood’s broader expansion into real-world assets and crypto. Some tokens, such as BTC and ETH, are used for activities such as crypto gambling or completing international transactions. 

Robinhood has also rolled out crypto futures products and acquired major crypto exchanges, including Bitstamp. The company is also lobbying for clearer rules in the U.S., recently proposing that the SEC establish a unified framework. 

Robinhood’s push comes amid a surge of interest in tokenizing real-world assets like bonds and Treasury bills – an estimated $24 billion market as of mid-2025. Tokenized equities are still a small fraction of that market, but their share is growing as major players test European waters.

Other crypto exchanges are also moving into on-chain stocks. Gemini launched tokenized stock trading for EU customers in June; Kraken plans to roll out tokenized U.S. equities for overseas clients; and Coinbase is seeking SEC approval to offer tokenized stocks in the U.S.. 

This competitive push underscores the momentum behind bringing traditional equities into crypto trading. Regulators continue to watch closely to ensure compliance and investor protection.