The tokenization of equities, while seen as a promising way to democratize access to publicly listed company stocks, has not gained traction as expected. Proponents of tokenization argue that existing regulations block the widespread adoption of equity tokenization. The Slow Burn of Equity Tokenization: Hype Versus Reality Although the tokenization of equities is widely accepted […]
Robinhood is trending, and share prices spiked 26%. The broker has acquired crypto exchange Bitstamp and is tokenizing U.S. stocks and making them available to European traders. On a day when the crypto market was see-sawing and even red at some point, the stock market was pumping, with Robinhood among the top gainers. Records show that HOOD, the share of Robinhood, rose 26% following key strategic announcements. DISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in July 2025 The Rise Of Robinhood, Acquisition of Bitstamp The surge was primarily propelled by the recent launch of its tokenized equities platform for European Union traders. Moreover, completing their $200 million acquisition of Bitstamp, a crypto exchange regulated in the European Union (EU), fanned demand. Johann Kerbrat, General Manager of Robinhood Crypto, said their acquisition of Bitstamp allows them to expand their footprint outside the United States. For analysts and traders, the deal further cemented the broker’s pivot toward crypto and blockchain, drawing the attention of institutions and retailers tracking some of the best meme coin ICOs. Slowly but surely, Robinhood is slowly bridging tradFi with DeFi, and crypto investors are closely tracking its moves, especially as it pushes to bring tokenized United States securities to European traders. Since rolling out crypto trading in 2018, Robinhood has steadily grown. As of May 2025, its user base rose to over 25 million funded accounts and more than 14 million monthly active users. Its commission-free model, sleek interface, and suite of over 10 crypto assets, including some of the best cryptos to buy, like DOGE ▲1.68%, make Robinhood a retail favorite. DogecoinPriceMarket CapDOGE$25.72B24h7d30d1yAll time The mass appeal also stems from the fact that, though the Robinhood interface is simple, the broker is compliant with United States laws. As such, by adding Bitstamp into its fold, it automatically integrates over 50 global licenses from the crypto exchange, bolstering its regulatory clout, especially in Europe. DISCOVER: 20+ Next Crypto to Explode in 2025 Focus on RWA Tokenization Although there are some questions about the legality of their tokenized stock receipts tied to popular United States stocks like Tesla, the goal was to enable 24/7 trading via Arbitrum, the Ethereum layer-2. However, Robinhood plans to launch its layer-2 later. All settlements will still be handled in the traditional markets. At our recent crypto event, we announced a limited Stock Token giveaway on OpenAI and SpaceX to eligible European customers. While it is true that they aren’t technically “equity” (you can see the precise dynamics in our Terms for those interested), the tokens effectively give… — Vlad Tenev (@vladtenev) July 2, 2025 To address concerns, especially those raised by OpenAI, a representative of the Bank of Lithuania, which regulates Robinhood in the European Union, said they are “awaiting clarifications regarding the structure of OpenAI and SpaceX stock tokens as well as the related consumer communication” After they receive and evaluate this information, they will “assess the legality and compliance of these specific instruments. The information for investors must be provided in clear, fair, and non-misleading language.” Even with this hitch, Vald Tenev, the CEO of Robinhood, believes the tokenization of securities will eventually address inequalities and boost access. This drive mirrors the platform’s mission of democratizing finance for all. By expanding to Europe, Robinhood is tapping into the more permissive regulatory environment under MiCA. Under this framework, regulated entities can offer tokenized assets without investor restrictions, as in the United States. At the same time, the broker is taking advantage of the more supportive crypto environment in the United States. By innovating and tapping into the blockchain, Robinhood is directly improving trading efficiency and transparency. DISCOVER: 10 Best Crypto Presales to Invest in July 2025 – Top Token Presales Robinhood Soars 26% On Bitstamp, RWA Tokenization Drive
Robinhood tokenized stocks just opened the door to Wall Street’s blockchain future. The trading app now lets European users buy tokenized U.S. stocks, including crypto-wrapped equities reissued in digital form. $HOOD ripped 11.25% higher to an all-time high, putting its YTD gain at nearly 150%. In one swipe, Robinhood is trying to do what legacy finance won’t do by making global stock access as seamless as buying Bitcoin. The end of public vs private markets is beginning. Capital formation too is more efficient in crypto markets. Lending markets too. This is democratization of finance and it's only going to accelerate from here… https://t.co/Z7fsKnzLul — Raoul Pal (@RaoulGMI) June 30, 2025 Robinhood Tokenized Stocks: Blockchain Meets Traditional Finance Stocks on-chain, futures in your pocket, and SpaceX tokens for breakfast. TradFi is quickly integrating with crypto. By launching tokenized U.S. stocks in a partnership with ETH-based DEX Arbitrum, Robinhood is among the many TradFi institutions diving headfirst into crypto. The rollout includes private share tokens for giants like OpenAI and SpaceX, letting retail investors access assets usually locked behind VC gates. And with staking, futures, and a MiCA-compliant framework, Robinhood is unleashing what brokerage apps can be. (HOOD) Robinhood CEO Vlad Tenev demonstrated a successful mock transaction of OpenAI stock during the launch event in Cannes, underscoring the viability of tokenized securities. Macro strategist Raoul Pal described the move as “democratization of finance,” applauding the elimination of barriers between public and private markets. “The end of public vs. private markets is beginning. Capital formation too is more efficient in crypto markets. This is democratization of finance and it’s only going to accelerate from here.” – Raoul Pal Raoul Pal: Impacts on Robinhood, Crypto, and Financial Markets Robinhood’s tokenized stock trading could generate significant revenue through potentially higher-margin trading fees. Analyst Ed Engel from Compass Point sees this innovation as a major driver for Robinhood’s growth, raising the company’s price target to $96 while reiterating a “Buy” rating. It’s a modest bump, but could be the catalyst that allows Robinhood to break into the S&P 500. Moreover, Robinhood’s crypto revenue is exploding, now valued at $252 million in Q2, up 100% from last year. As Robinhood folds tokenized stocks, staking, and crypto futures into one system, the firm is betting big on a redefined market structure. Others may dabble, but Robinhood is building the new financial rails that Millennials and Gen Z will use for decades. EXPLORE: XRP Price Jumps 11% After SEC Crypto Unit Tease XRP ETF Progress Join The 99Bitcoins News Discord Here For The Latest Market Updates Key Takeaways