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Robinhood’s Tokenized Temptation

BBG News

It appears that the enterprising sorts at Robinhood have stumbled upon a veritable goldmine – or rather, a tokenized mine, if you will 🤑. Following the launch of their stock token platform in the European Union, the company has been inundated with requests from private firms clamoring to tokenize their shares and join the blockchain revolution.

In a recent interview with Bloomberg News, CEO Vlad Tenev revealed that the company has received a “deluge of inquiries” from private companies eager to make their equity accessible to retail investors through blockchain-based tokens on their platform 📈. One can almost hear the sound of champagne corks popping in the background as Tenev proclaimed, “Since our announcement, I’ve had a deluge of inquiries, private companies that actually want to access retail to have their shares tokenized and be a part of this revolution.”

Currently, the platform offers over 200 tokenized US equities tradable five days a week – a veritable smorgasbord of investment opportunities 🍴. And, in a clever marketing ploy, the company included a promotional giveaway of non-tradable tokens representing private companies like OpenAI and SpaceX 🚀.

Tenev’s long-term goal is to bring thousands of private companies onto the platform, thereby resolving one of the biggest inequities in capital markets – namely, the fact that massive companies are staying private longer 🤔. “We believe [this] is a huge opportunity to resolve one of the biggest inequities in capital markets, which is the fact that you have these massive companies that are staying private longer,” he said, with all the conviction of a true believer.

A Spot of Scrutiny

However, not everyone is convinced of the merits of Robinhood’s tokenized platform 🤔. The Bank of Lithuania, which regulates Robinhood in the EU, has requested clarification on how the tokens are structured – a move that Tenev welcomed with open arms 🤗. “They want to make sure that everything is proper because it’s a new innovative offering. We’re confident. We think that these are not only important, but they’ll withstand the highest form of scrutiny,” he said, exuding an air of confidence.

The tokens, technically classified as derivatives under the EU’s Markets in Crypto-Assets Regulation (MiCA) and Markets in Financial Instruments Directive (MiFID) regulations, are backed by underlying assets held by US brokers, with tokens minted or burned as users buy or sell 🔥.

Tenev confirmed that the firm is in discussions with regulators in the US and UK, but the platform is not yet available in those markets 🌎. He believes the US Securities and Exchange Commission (SEC) has the authority to greenlight tokenization without requiring new legislation – a move that would undoubtedly send shockwaves through the financial world 🌟.

“The US shouldn’t be far behind. The opportunity is too large to ignore. Not just for retail but also institutional. And I think they’re keen. They’re having tokenization roundtables at the SEC, which we’ve been a part of,” he said, with a hint of excitement.

As reported, Galaxy Digital has said that Robinhood’s tokenization move removes assets from traditional market channels and brings them onchain, directly challenging the concentrated liquidity and activity that give major TradFi exchanges like the NYSE their edge 📊.

CryptoMoon reached out to Robinhood for comment but had not received a response by publication – a silence that speaks volumes, perhaps? 🤐

Tokenization Frenzy

Robinhood’s tokenization move comes as the push toward bringing assets onchain gains traction 🚀. On Tuesday, Nasdaq-listed BioSig Technologies secured up to $1.1 billion in funding from an undisclosed institutional investor to support its plan to tokenize the commodities market – a move that has left many in the industry aghast 🤯.

In other news, the QCD Money Market Fund (QCDT), a joint initiative by DMZ Finance and QNB, has received approval from the Dubai Financial Services Authority (DFSA), becoming the first tokenized money market fund established in the Dubai International Financial Centre (DIFC) – a development that has sent shockwaves through the financial world 🌟.

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2025-07-08 16:01

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