Rongchai Wang
Jul 04, 2025 21:40
Robinhood unveils a brand new blockchain and tokenized inventory initiative, whereas Coinbase introduces perpetual futures, as regulatory hurdles loom.
Robinhood has introduced a major step ahead in blockchain integration by launching its personal Ethereum Digital Machine-compatible layer-2 blockchain, often called Robinhood Chain, on the Arbitrum Orbit stack. This initiative, revealed on the EthCC convention, marks a notable development within the brokerage’s technique to include blockchain and tokenization into its core choices, in line with Galaxy.com.
Robinhood’s Blockchain Ambitions
The introduction of the Robinhood Chain permits customers to commerce tokenized derivatives of shares, opening up new avenues for transferring and self-custody of belongings, a major shift from conventional securities. The underlying shares are held by a U.S. broker-dealer, whereas a ‘token engine’ creates a wrapper for these belongings, facilitating trades at actual market charges and enabling offchain liquidity.
Controversially, Robinhood permits EU customers to commerce tokens linked to privately held firms like OpenAI and SpaceX, regardless of OpenAI distancing itself from this initiative. This transfer highlights Robinhood’s ambition to leverage blockchain for twenty-four/7 buying and selling, a functionality additional bolstered by its acquisition of crypto change Bitstamp.
Coinbase’s Perpetual Futures
In parallel, Coinbase is making strides by launching a regulated model of perpetual futures within the U.S., providing contracts for nano bitcoin (0.01 BTC) and nano ether (0.10 ETH) with 24/7 buying and selling. These contracts, regulated by the Commodity Futures Buying and selling Fee (CFTC), purpose to align with conventional perpetual futures whereas adhering to U.S. rules.
This revolutionary strategy by Coinbase, whereas compliant, presents challenges in adoption and liquidity as a consequence of its deviation from conventional perpetual contracts. Nonetheless, it gives a regulated various to offshore markets, doubtlessly attracting institutional curiosity.
Regulatory Panorama and Future Implications
The U.S. Securities and Change Fee (SEC) is reportedly creating a ‘generic normal’ for token-based ETFs to streamline approval processes. This initiative comes amidst a backdrop of quite a few pending crypto ETF functions, highlighting the rising curiosity in regulated crypto funding merchandise.
As blockchain expertise continues to disrupt conventional finance, the combination of tokenized belongings and perpetual futures by corporations like Robinhood and Coinbase underscores the transformative potential of decentralized finance. Nonetheless, regulatory challenges and market dynamics will play important roles in shaping the longer term trajectory of those improvements.
Picture supply: Shutterstock
