Tokenization, once considered an experimental corner of the financial world, is now firmly in the mainstream—and Robinhood is leading the charge in Europe. On October 19, 2025, Robinhood announced the rollout of 80 new tokenized U.S. stocks for European investors on the Arbitrum network, bringing its total offering to nearly 500 tokenized assets. This expansion is more than just a technical upgrade; it signals a fundamental transformation in how everyday investors can access and trade American equities.
According to data reported by Dune Analytics and cited by Cryptopolitan, Robinhood’s tokenized assets now exceed $8.5 million in value, with $19.3 million worth of tokens minted overall and $11.5 million already burned. This burn rate—essentially, the destruction of tokens after they’re traded or redeemed—points to a lively secondary market, a clear sign of investor engagement and liquidity.
The mechanics behind these offerings are as innovative as they are complex. Instead of providing direct ownership of stocks, Robinhood’s tokens are blockchain derivatives. They’re tied to the underlying prices of U.S. equities and exchange-traded funds (ETFs), but regulated under Europe’s MiFID II framework. As Cointribune explains, this means European users can trade fractional shares of American assets 24/7, with minimal fees (just a 0.1% foreign exchange charge) and an entry point as low as 1 euro. For many young, tech-savvy investors, the combination of continuous access and low costs is a game-changer.
Tom Wan, a research analyst tracking Robinhood’s expansion, summed it up succinctly: “Robinhood EU users now have a wider range of US Stocks, Equities, and ETFs, thanks to Tokenization.” The latest batch of tokenized stocks includes high-profile names such as Galaxy (GLXY), Webull (BULL), and Synopsys (SNPS), broadening the appeal to a diverse investor base.
But not everyone is cheering. In July 2025, the Bank of Lithuania, Robinhood’s primary regulator in the European Union, requested detailed clarifications about the legal structure of these tokens. The concern? While the tokens offer price exposure, they do not confer actual stock ownership. This regulatory scrutiny has not deterred Robinhood CEO Vlad Tenev, who remains bullish on the future of tokenization. As Tenev put it, “Tokenization is like a freight train. Nothing can stop it, and it will eventually engulf the entire financial system.”
Robinhood’s strategy is not just about tokens. The company has been steadily building a broader digital investment ecosystem. In May 2025, it acquired WonderFi, a Canadian crypto platform, for $179 million, and soon after, launched micro futures contracts for Bitcoin, XRP, and Solana. These moves support Robinhood’s ambition to bridge traditional finance (TradFi) and decentralized finance (DeFi), offering users a seamless experience across asset classes and technologies.
This vision aligns with that of BlackRock CEO Larry Fink, who has publicly imagined a future where ETFs and retirement funds exist natively on blockchains, accessible from a smartphone. Fink’s long-term strategy, as reported by Cointribune, sees tokenization not just as a novelty but as a core pillar of the next era in finance. “ETFs and retirement funds will be natively on blockchains, accessible via smartphones,” Fink said, envisioning a world where traditional and digital assets blend effortlessly.
The numbers behind this trend are staggering. Analysts from TD Cowen expect the value of blockchain-recorded assets to skyrocket from roughly $4.6 trillion today to over $100 trillion within the next five years. Raoul Pal, CEO of Real Vision and a former Goldman Sachs executive, predicts a similar trajectory, anticipating the total crypto market cap could soar to $100 trillion. He’s even shifted most of his liquid assets into Solana (SOL), moving away from Bitcoin and other cryptocurrencies, and sees a significant rally for Ethereum (ETH) and the gaming crypto sector on the horizon.
Robinhood’s tokenization push is not happening in isolation. Around the world, other financial giants are making similar moves. China Merchants Bank recently tokenized its $3.8 billion money market fund on BNB Chain, and S&P Global Ratings has partnered with Chainlink to provide real-time insights into stablecoin reliability. Meanwhile, the European Commission is preparing a new wave of financial proposals under its upcoming Savings and Investment Union (SIU), with a focus on tokenizing real-world assets rather than simply updating the existing Markets in Crypto-Assets (MiCA) framework.
Yet, the rapid growth of tokenized assets isn’t without risks. Europol’s latest report highlights how criminals are increasingly using cryptocurrencies, including stablecoins and privacy coins like Monero, for illegal activities such as drug trafficking and money laundering. In fact, European authorities recently dismantled a major organized crime operation that used cryptocurrency to move tens of millions in illicit funds. These developments underscore the need for robust regulation and oversight as tokenization becomes more widespread.
Robinhood’s core business model also faces challenges. Despite its innovative offerings, more than 50% of its revenue still comes directly from trading—a stark contrast to traditional brokerage firms like Charles Schwab, which rely more on banking products and advisory fees. Robinhood’s user base is younger and less wealthy, with average balances of around $10,000, compared to Schwab customers who typically hold far more substantial sums. This demographic reality means Robinhood must continually innovate to retain and grow its audience, especially during market downturns.
To that end, Robinhood has diversified its product suite by adding retirement portfolios, high-yield savings accounts, and acquiring TradePMR, a network of registered investment advisers, earlier this year. These moves aim to make the platform more resilient and appealing to a broader swath of investors.
Meanwhile, the broader European market faces its own headwinds. European stocks have underperformed the S&P 500 in 2025, with the U.S. index up over 25% while the Stoxx 600 has gained only 5%. Inflation in the eurozone ticked up slightly to 2.6% in July 2024, adding another layer of complexity for investors navigating both traditional and digital markets.
As Robinhood continues to press for regulatory clarity—submitting a full proposal to the U.S. Securities and Exchange Commission (SEC) for a national framework to oversee real-world asset tokens—the company finds itself at the epicenter of a global financial transformation. Whether this is the dawn of a new era in digital capitalism or simply the next chapter in the evolution of markets remains to be seen. But one thing is certain: the freight train of tokenization is picking up speed, and there’s no turning back.