Robinhood Announces Tokenized Equities and New Layer-2 Ambitions

Walled Garden Tokenization, Perpetual Crypto Futures, and Industry Pushback Define New Chapter

Robinhood has triggered a fresh wave of competition across both crypto and traditional finance by launching over 200 tokenized U.S. equities for European customers, marking a decisive move to redefine how users interact with stocks, ETFs, and the broader crypto price index. 

Rolling out these assets on Arbitrum’s blockchain at the end of June 2025, Robinhood brought major names like Tesla, Apple, Nvidia, and Microsoft directly into its app—offering real dividend payouts and a familiar trading experience. The tokenized stock contracts cost Robinhood only $5 in total deployment fees, averaging just three cents per contract according to Arbscan data, which industry analysts view as a powerful demonstration of Ethereum Layer-2 cost efficiency.

Yet Robinhood’s technical approach stands apart from the open ethos that usually characterizes DeFi. Each token transfer is restricted to an allow-list of approved wallets, preventing users from moving their tokenized stocks into external self-custody solutions such as MetaMask. This “walled garden” setup means Robinhood retains full control and ensures compliance but limits broader composability. 

As Electric Capital researcher Ren pointed out, “CeFi with distribution just outcompetes existing DeFi protocols” under this model. Despite similarities to tokenized equity services from Bybit, Kraken, and the Backed Finance xStocks program, Robinhood’s expansion is available strictly to non-U.S. residents—primarily in Europe—due to ongoing regulatory uncertainties in the United States. Dinari, another platform, recently claimed the first U.S. approval for tokenized shares and partnered with Gemini to extend similar offerings, reflecting the rapid evolution of this sector.

The company’s ambitions reach well beyond tokenized stocks. Robinhood is developing its own Layer-2 blockchain, built on Arbitrum technology and engineered for “military-grade security” and mainstream adoption of real-world asset (RWA) tokenization. CEO Vlad Tenev emphasized that instant settlement and advanced scalability are top priorities, aiming to bring the speed, efficiency, and transparency of blockchain to traditional finance products. The new chain is expected to address legacy settlement delays and high costs, making on-chain finance practical for global retail and institutional users. 

At the same time, Robinhood has rolled out perpetual crypto futures with up to 3x leverage for eligible European customers, and expanded staking options for Ethereum and Solana across the U.S., EU, and EEA, providing more ways for users to participate in the coin market cap ecosystem.

These developments have resonated with investors: Robinhood’s stock surged more than 8%, hitting an all-time high of $90.49 following the announcement of its multi-faceted expansion. The company’s crypto price index and trading platform continue to gain ground in the EU, where a collaborative regulatory environment has allowed rapid rollout. CEO Tenev credited “regulators and policymakers” in Europe for enabling this new era, contrasting sharply with the risk-averse climate prevailing in the U.S.

Controversy also accompanied Robinhood’s push into tokenized equities. OpenAI issued a public warning on July 3, 2025, after discovering that Robinhood was offering tokenized shares representing OpenAI’s private equity without authorization. The AI giant labeled the tokens “unauthorized and misleading,” making clear that it had not endorsed any such products and cautioning investors to be vigilant. This dispute highlights the complexities of intellectual property, brand use, and investor protection as crypto price index products increasingly blur the line between public and private assets on-chain.

In response to discussions surrounding OpenAI and SpaceX tokenization, Robinhood's CEO emphasized the importance of accessibility and innovation in the financial market. He highlighted that tokenization could democratize investment opportunities, allowing more individuals to participate in high-value assets. The CEO pointed out that Robinhood aims to leverage technology to improve user experience while ensuring compliance with regulatory standards. He also noted the growing interest in blockchain technologies and their potential to transform traditional finance.

Robinhood’s aggressive expansion comes amid intense competition from exchanges like Kraken, Bybit, and Gemini, all seeking to attract users through similar tokenized equity products outside the U.S. The company’s $200 million acquisition of Bitstamp last year bolstered its regulatory position, arming it with more than 50 global licenses and paving the way for future growth in the coin market cap sector.

Industry reaction remains split. Some observers applaud Robinhood’s efficiency, compliance, and ability to drive mass adoption with its new crypto price offerings and all-in-one app, while others warn that the company’s closed ecosystem model risks undermining decentralization and self-custody—principles that have long defined the crypto sector. 

What is clear is that the period between June 30 and July 3, 2025, marks a critical inflection point: Robinhood is betting on an interconnected future where crypto price, coin market cap, and traditional equity assets converge on scalable, secure blockchains, with Europe emerging as the proving ground for this next phase of financial innovation.

This article has been refined and enhanced by ChatGPT.