Robinhood's crypto plan for stocks
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Robinhood launched tokenized stock trading in Europe today, testing the mechanics of a blockchain-powered future for retail stock traders while crypto regulation continues to take shape in the U.S.
- 📈 The announcement, one of several crypto-based initiatives unveiled by Robinhood today, sent shares surging nearly 13% to a new all-time high.
The big picture: A number of companies have announced similar stock tokenization plans, all aimed at making equities trading simpler, cheaper and more convenient — but experts warn they face significant hurdles.
🔧 How it works: Robinhood will own the shares backing the tokens.
- Holders of the tokenized stocks would accrue proportional dividends, but would not have voting rights, a company spokesperson told Bloomberg.
Robinhood is offering "stock tokens" for more than 200 U.S. names and exchange-traded funds, including Nvidia, Microsoft, Apple and the Vanguard S&P 500 ETF, the company said.
- 🇪🇺 That would immediately present an easier way for European customers to access U.S. stocks, with trading available 24 hours a day, five days a week.
- 🤑 Robinhood also said it would make stock tokens of privately held stocks — including OpenAI and SpaceX — available to eligible European customers later this summer.
Zoom out: "Our latest offerings lay the groundwork for crypto to become the backbone of the global financial system," Robinhood CEO Vlad Tenev said in a statement.
