The leading US broker Robinhood Markets Inc. has submitted a proposal to the SEC for regulating the tokenization of real-world assets (RWAs). This would allow the company to launch its own marketplace for RWAs.
The Nasdaq-listed broker dominates the stock trading business among retail customers and has been offering cryptocurrencies for several years. Real-world assets (RWAs) are next in line. As reported by agrowstar, Robinhood has filed a regulatory proposal with the US Securities and Exchange Commission (SEC). The proposal is part of a strategy to establish the new platform Robinhood RWA Exchange (RRE), which will be based on the Solana and Base blockchains.
Robinhood’s vision for RWAs
The broker’s proposal marks a turning point for financial markets by bridging traditional financial systems with blockchain technology. The RRE platform leverages the Solana blockchain for its high transaction speed and low fees, as well as Base, an Ethereum Layer-2 solution, for scalability and security.
The goal of the project is to enhance market efficiency, reduce costs, and improve liquidity through blockchain technology. The proposal includes federal standards for issuing tokenized assets, decentralized on-chain tracking, and global KYC/AML compliance. Currently, tokenization products manage around 22 billion USD. However, forecasts suggest the RWA market could grow to 30 trillion USD by 2030.
The architecture aims to shorten the traditional T+2 settlement cycle to T+0 and reduce annual trading costs by 30%. Robinhood CEO Vlad Tenev emphasized that the tokenization of RWAs represents a new paradigm for institutional asset allocation. Through transparent on-chain data and real-time notarization, the platform is designed to foster trust and efficiency, making it particularly appealing to institutional investors.
Global impact and challenges
Robinhood’s initiative could shape the global landscape of RWA tokenization but faces regulatory and technical challenges. The lack of clear regulation for tokenized securities calls for an urgent, unified federal framework to eliminate legal uncertainties.
Beyond Robinhood, other US financial giants are heavily investing in tokenization. Since March 2024, BlackRock has been offering a tokenized money market fund on Ethereum, which now manages 3 billion USD. Just last week, investment bank JPMorgan conducted its first RWA transaction on a public blockchain. It is likely in everyone’s interest to support such regulatory initiatives.