The boundary between traditional assets and crypto assets is becoming increasingly thin.
On June 30, US investment trading platform Robinhood (HOOD.US) announced the launch of tokenized stock and ETF services in the European Union. Eligible users can now invest in over 200 US stocks and ETFs, enabling 24-hour, five-day-a-week real-time trading—including major companies like NVIDIA (NVDA.US), Microsoft (MSFT.US), Apple (AAPL.US), and Amazon (AMZN.US).
Notably, tokenized equity for currently unlisted companies such as SpaceX and OpenAI has also been made available. This marks the first time Robinhood has tokenized private company shares, a move made possible in part due to the EU’s more flexible regulatory environment.
Johann Kerbrat, General Manager of Robinhood Crypto, stated: “The goal of tokenization is to allow everyone to participate in this type of investment. The EU does not have qualified investor rules like the US, so all eligible users can trade these stock tokens.”
Investment Democratization or Market Stagnation?
According to Robinhood’s official website, when users purchase stock tokens, they are essentially buying tokenized contracts that track the stock price of the target company. These contracts are also recorded on a blockchain.
Additionally, the platform clarifies that users currently cannot send stock tokens to other wallets or platforms—trading is confined to Robinhood, which acts as the exchange. Stock tokens are displayed and traded in US dollars. When a user places an order, Robinhood automatically converts euros to dollars at the current exchange rate, adding a 0.10% foreign exchange fee.
Vlad Tenev, Co-Founder and CEO of Robinhood, considers this a form of “investment democratization.”
In an interview on the Bankless podcast, he said: “We have driven financial democratization, enabling tens of millions of customers to participate. So, while there is still a gap between tokenization and existing infrastructure in secondary market stocks, it enables all types of assets to become tradable, even if they are not listed on liquid exchanges. Non-listed equity is a significant issue. Companies like SpaceX and OpenAI, valued in the hundreds of billions, can remain private indefinitely. Ordinary investors have no way to participate in the value appreciation of these companies, and even high-net-worth individuals find it difficult to gain access.”
However, the long-term non-listing of top tech companies also makes it challenging for ordinary investors to share in their growth. Previously, Bill Gurley, former General Partner at Benchmark, noted in an interview that “private is the new public.” Liquidity in the primary market is so abundant that top “super unicorns” no longer need to IPO for funding, especially given the costs of discounting and regulatory compliance associated with public offerings.
“If you can maintain your own primary market, why take on the extra work, regulation, data disclosure, and let competitors know your situation? It makes sense for everyone, so I suspect this model will persist,” Gurley remarked.
On the regulatory front, Robinhood’s stock tokens are issued under MiFID II regulations as derivatives, with the underlying assets held by licensed US institutions. Regarding future US regulatory direction and implementation, Vlad Tenev believes that stock tokens will still fall under SEC oversight. “We’ve had multiple discussions with the SEC’s Crypto Task Force. Our Crypto GM Johann attended a tokenization roundtable in Washington a few weeks ago. We believe that equity tokens only require SEC approval and do not need additional congressional legislation. They are relatively open to the idea.”
Robinhood initially gained traction by attracting retail investors with its commission-free stock trading and mobile-first strategy. Later, it gained notoriety during events like the “retail trader vs. Wall Street” short squeeze, which sparked both popularity and controversy. Today, Robinhood is moving toward becoming an “all-in-one investment platform,” encompassing both traditional stocks and emerging crypto assets, aiming to offer users a seamless experience.
Chinese Brokers Explore New Asset Classes
In Hong Kong, as regulatory directions for crypto assets become clearer, brokers with Chinese backgrounds are actively making moves.
About a week ago, Guotai Junan International (1788.HK), a subsidiary of the Guotai Haitong Group, officially received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to include virtual asset trading services. This upgrade allows clients to directly trade cryptocurrencies and stablecoins on Guotai Junan International’s platform. Following the announcement, the company’s stock price surged by 198% in a single trading session.
Analysts suggest that several other Chinese brokers are likely to follow suit. Previously, according to multiple media reports, Futu Holdings (FUTU.US) enabled deposit services for Bitcoin, Ethereum, and USDT on its Futubull platform in early May, allowing investors to deposit and trade major digital assets.
As regulatory attitudes toward stablecoins become clearer in markets like the US and Hong Kong, crypto assets are reshaping the direction and logic of asset allocation.
The most direct change comes from growing interest among institutional investors. A research report from GF Securities shows that throughout 2024 and the first few months of 2025, both cryptocurrencies and gold demonstrated a trend of “net inflows.”
Thomas Laffont, Co-Founder of Coatue, stated after this year’s EMW conference that it would be interesting to think of Bitcoin as a “company,” and that we have reached a stage where “we can no longer ignore it.” He mentioned considering incorporating leading cryptocurrency projects into Coatue’s valuation framework.
From this perspective, the boundaries between retail and institutional investors, as well as between crypto and traditional assets, are increasingly blurring. Markets are becoming more efficient, enhancing liquidity and tradability across different asset classes. However, this also introduces greater price volatility due to increased retail participation. Therefore, in a market where “walls are becoming thinner,” the industry must quickly adapt to rethinking the risk-return profile of assets.
As of the close on June 30 (Monday), Robinhood’s stock price rose by 12.8%, though it fell by 1.39% by Tuesday’s close, bringing its market capitalization to $814.8 billion. The company’s stock rose 41.5% in June, following a 34.7% increase in May.
Frequently Asked Questions
What are tokenized stocks?
Tokenized stocks are digital representations of traditional equities, built on blockchain technology. They track the price of the underlying stock and allow for fractional ownership and extended trading hours.
Who can trade tokenized stocks on Robinhood in Europe?
Eligible users in the European Union can trade these assets. Unlike in the US, there are no qualified investor restrictions, making the offering accessible to a broader audience.
Can tokenized stocks be transferred to external wallets?
Currently, Robinhood does not support transfers of stock tokens to external wallets or platforms. All trading must occur within the Robinhood ecosystem.
How does Robinhood handle currency conversion?
When users place orders in euros, Robinhood automatically converts the amount to US dollars at the prevailing exchange rate, applying a 0.10% foreign exchange fee.
What is the regulatory status of tokenized stocks?
In the EU, these tokens are regulated under MiFID II as derivatives. In the US, Robinhood is engaging with the SEC to seek approval under existing frameworks.
Why are private companies like SpaceX being tokenized?
Tokenizing private company shares allows retail investors to gain exposure to high-growth firms that remain unlisted, thus democratizing access to early-stage investment opportunities.
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