Robinhood launches stock tokenization and Layer 2 blockchain; stock price hits all-time high.
Written by: BLOCKHEAD
Compiled by: Jessica, Techub News
The company announced the news at the “To Catch a Token” event held in Cannes, France, marking a significant expansion of Robinhood in the realm of crypto products and its foray into the blockchain-based traditional finance sector.
Robinhood announced on Monday the launch of its tokenization service, which will allow EU customers to trade over 200 U.S. stocks and exchange-traded funds (ETFs), including Nvidia, Apple, and Microsoft.
The core of this release is the Robinhood stock token, which provides EU customers with commission-free trading of US stocks, supporting trading 24 hours a day for 5 days a week and dividend distribution. A new Layer 2 network built on Arbitrum will support the issuance of over 200 US stock and ETF tokens, allowing European investors to access US assets. According to the announcement, these tokenized stocks will initially be issued on Arbitrum, but will eventually migrate to the proprietary Layer 2 blockchain that Robinhood is developing.
The company also announced a Layer 2 blockchain plan based on Ethereum, optimized for tokenizing real-world assets. This new chain, utilizing the Arbitrum technology stack, aims to support 24/7 trading of tokenized assets, self-custody, and cross-chain bridging, enabling Robinhood to directly compete with traditional financial infrastructure by facilitating continuous trading beyond standard market hours.
Other new products include: crypto perpetual contracts with up to 3x leverage for EU customers; Ethereum and Solana staking services for US customers; and multiple feature upgrades, including an AI investment assistant named Cortex and a smart exchange routing system.
CEO Vlad Tenev positioned these initiatives as the foundation for cryptocurrency to become a “pillar of the global financial system,” expanding Robinhood’s services to over 400 million people across 30 countries in the EU and the European Economic Area.
Stock price surges
The announcement has sparked a strong reaction in the market. Robinhood stock (NASDAQ: HOOD) surged 12.7% on Monday to a historic high of $94.24, closing at $93.63, and further reaching $96.55 in after-hours trading.
As of Monday’s closing, Robinhood’s market capitalization reached $82.63 billion, with its stock price more than doubling this year, far exceeding the IPO issuance price of $38. Since 2025, the stock has maintained a strong upward momentum, with a cumulative increase of 310.84% year-to-date.
The collaboration with Arbitrum has also boosted the price of the blockchain’s native token, with ARB rising over 20% due to rumors before the official confirmation, ultimately stabilizing around $0.34.
This release is Robinhood’s boldest move to date in the crypto infrastructure space, potentially positioning the company as a bridge between traditional finance and decentralized systems while seizing the growing trend of tokenization in financial markets.