$HOOD
BREAKING: Robinhood may be launching a blockchain based platform to allow Europeans to trade US Assets according to Bloomberg.
Okay, let’s take some time to dive into this…
So, CEO Vlad Tenev has been speaking aggressively on the concept of tokenizing assets for about 12 months now.
He’s gone on numerous podcasts, even crypto dedicated podcasts, and explained his vision around using blockchain technology to make 24/7 trading possible without needing traditional exchanges like the NYSE or Nasdaq.
Robinhood has a major crypto event in June. No one knows what they are planning to announce, but Vlad said the potential announcements were making him “giddy” when he got confirmation of what they were bringing to the market.
I personally am not sure if this June is going to be the introduction of a blockchain based US asset trading platform — but it ABSOLUTELY is happening, the question is when.
Blackrock CEO Larry Fink has said that he wants to tokenize EVERYTHING to the point where you could trade tokens around mansions or NYC commercial real estate…on the blockchain.
Why does it matter if Robinhood pulls this off?
- Tokenized assets can reduce reliance on traditional clearing systems, potentially cutting costs for both Robinhood and its users through faster, more automated settlements.
- Adding tokenized securities and derivatives would diversify Robinhood’s platform, attracting more advanced investors and increasing its competitiveness globally.
- Through its Lithuanian license (found that out a month ago) and Bitstamp acquisition (closing later this year), Robinhood could establish a stronger regulatory presence in the EU, positioning itself as a leader in compliant digital asset trading…without needing to launch a brokerage for people to trade stocks.
Now, for investors in
$HOOD, this is BIG.
- We get to see Robinhood be at the FRONT LINES of innovating in the crypto sector by using blockchains productively, not just for memes.
- Robinhood’s take rate on crypto is HUGE compared to equities, if tokenized assets were even 10% of their crypto take rates, they’d make way more from people trading these than just buying stocks on their regular brokerage —> huge for their EPS growth.
- Robinhood will continue to solidify their presence as one of the largest financial institutions. Again, Blackrock is trying to do what Vlad is talking about…if Robinhood ends up really going for this, it just becomes hard to deny how relentless they are becoming at building one of the most important technology companies on the planet that is focused on democratizing finance.
No idea if this launches soon but I feel the company is seriously working towards this based on Vlad’s comments.
LFG.