Key Takeaways
- Robinhood unveils tokenized stock assets on the Arbitrum network for its users in the EU and the U.S.
- Robinhood to allow EU traders access to its futures perpetual contracts of these assets through 3X leverage, 24/7.
- A long-term view of Robinhood is to launch its layer-2 blockchain on the Arbitrum network.
Robinhood is making a strong wave in the crypto space, gaining buzz, and its stock, HOOD, is rallying by over 12% in a single day following its historic move to explore the tokenized industry for U.S. stocks and its blockchain technology on the Arbitrum network.
The fintech giant, in a recent event at Cannes, unveiled a new product that aims to bridge the gap between traditional finance and the crypto industry, providing a seamless experience for its users in the U.S. and EU.
According to Robinhood’s CEO, Vlad Tenev, the crypto space is witnessing tremendous growth from institutional investors and a regulatory shift that promises to promote more adoption of crypto assets in the U.S., as Robinhood sees the crypto space redefining the traditional financial system.
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Tokenized Stocks, Trading Expansion, and Blockchain
Robinhood, in its recent event, launched tokenized trading for its U.S. and EU users, allowing them to access these assets 24/7 with over 200 U.S. stocks and ETFs.
These tokenized assets enable users to gain exposure to shares of private companies, such as OpenAI and SpaceX. They also introduced staking for Ethereum and Solana in the U.S. and EU regions.
Additionally, the fintech company announced perpetual futures of these assets, offering up to 3X leverage for EU users as part of a broader strategy to integrate cryptocurrency into the global financial system.
The product rollout doesn’t stop there; it has further announced a commission-free dividend for its users while trading these tokenized assets on the Arbitrum network, for starters. However, on a broader and longer-term view, Robinhood aims to develop its layer-2 blockchain technology on the Arbitrum network to better serve its users.
Robinhood’s blockchain technology would also allow its users to access low transaction fees, a lower entry barrier for swapping and cross-chain bridging of tokens, and, above all, access to a 24/7 trading facility.
Following this news, the likes of Robinhood stock HOOD and Arbitrum token (ARB) saw a strong rally of over 12% growth in the last 24 hours as the market looks increasingly bullish for altcoins.
Robinhood Stock (HOOD) Market Reaction to Product Rollout
Following the news breakout, Robinhood stock (HOOD) rallied by over 13%, hitting a milestone of $92 with a year-to-date market increase of 200% to 300% in the last 12 months, reflecting strong investor confidence in market growth and expectations for its product rollout.
Stock’s analyst on X, Amit, suggested this current price rally of HOOD is a reflection of Robinhood’s growth, making reference to the similar experience of the GOLD rally, describing the feeling as the coolest journey and a collective effort.
Investors and traders will be paying close attention to Robinhood following a strong statement in the crypto space, as other traditional finance companies are likely to follow a similar path in providing seamless services for users through blockchain technologies.