Robinhood Just Changed the Game
The trading app that democratized stocks for millennials is making its boldest crypto move yet. Today, Robinhood announced two seismic shifts:
1. Stock Tokens: Fractional Shares Go Crypto (EU)
European users can now trade tokenized versions of U.S. stocks like Apple and Tesla directly in the Robinhood Wallet. These aren't memecoins they're backed 1:1 by real equities. Think: buying $5 of Amazon without paperwork.
"This is about breaking down walls," said Johann Kerbrat, Robinhood Crypto's CTO. "Why should stocks and crypto live in separate worlds?"
2. "Robinhood L2": A U.S.-Built Blockchain (Coming Soon)
Stateside, the firm is developing its own Layer 2 blockchain to slash fees and enable staking. While technical details remain sparse, insiders hint at using tech stacks like Polygon's CDK or Arbitrum Orbit.
The goal? Let U.S. users trade crypto at lightning speed for pennies—while earning yield through staking.
Why This Matters
- EU First-Mover Advantage: Robinhood leverages Europe's MiCA regulations to outflank Coinbase and eToro.
- U.S. Regulatory Chess: The L2 sidesteps SEC stock-token scrutiny by focusing purely on crypto infrastructure.
- Competition Nightmare: Traditional brokers face tokenized stocks; crypto exchanges battle fee-free trading.
One question looms: Can a platform known for GameStop restrictions truly deliver decentralized innovation? We'll be watching.