Robinhood Nears 500 Tokenized Assets on Arbitrum, Including Bitcoin-Linked Stocks; Regulatory Scrutiny Continues

• Stocks dominate the token mix: Stocks account for about 70% of deployed tokens, ETFs around 24%, with smaller allocations to commodities, crypto ETFs and US Treasurys.

• Tokenized assets are derivatives: They track the prices of underlying securities but do not confer direct ownership; they are structured under MiFID II.

• Active market growth: Cumulative mint volume has surpassed $19.3 million, with burning activity around $11.5 million, indicating a growing but actively traded market.

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What is Robinhood tokenization on Arbitrum?

Robinhood tokenization on Arbitrum is the deployment of layer-2 tokenized assets that mirror US stocks and ETFs without conferring direct ownership. The program uses MiFID II-regulated derivatives on an Arbitrum-based network, enabling 24-hour market access and a transparent structure; as of now, 493 assets are tokenized with a value above $8.5 million, with cumulative mint volume over $19.3 million and burns near $11.5 million.

How does tokenization on Arbitrum work for EU investors?

The tokenized assets are derivative contracts that track the prices of underlying US securities rather than providing direct ownership. Regulated under MiFID II, these instruments operate on a layer-2 network and are accessible to EU users. Bank of Lithuania has requested clarification on the structure, and researchers note that EU users now have broader access to US stocks through tokenization, with the EU expansion supported by ongoing regulatory oversight.

Tom Wan commented on the EU development, saying, “Robinhood EU users now have a wider range of US Stocks, Equities, and ETFs, thanks to Tokenization.”

Blockchain-based derivatives, not real shares

In June, Robinhood launched a tokenization-focused layer-2 blockchain built on Arbitrum, allowing EU users to trade tokenized US stocks and ETFs as part of its real-world asset (RWA) expansion. The stock tokens mirror prices of publicly traded US securities but do not represent direct ownership of the underlying shares. They are structured as blockchain-based derivatives regulated under MiFID II, and the company emphasizes 24-hour market access with no hidden fees beyond a 0.1% FX charge, with investing possible starting at 1 euro.

Regulatory attention has grown. In July, the Bank of Lithuania—an EU regulator for Robinhood—requested clarification on how the tokens are structured. The company has welcomed the review as part of a broader effort to clarify tokenization rules in Europe. Related: Ondo Finance to SEC: Hold off on Nasdaq’s tokenized securities plan

Robinhood deepens its crypto expansion

Robinhood’s tokenization rollout comes on the heels of broader crypto initiatives, including the launch of micro futures contracts for Bitcoin (BTC), XRP (XRP) and Solana (SOL) on Arbitrum. The expansion followed an earlier May deal to acquire WonderFi in Canada for $179 million, strengthening its global footprint. Separately, Robinhood has advocated for a clearer regulatory framework for RWAs in the United States, submitting a proposal to the U.S. Securities and Exchange Commission for a unified national framework.

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Frequently Asked Questions

What is the difference between tokenized stocks and traditional shares?

Tokenized stocks are blockchain-based derivatives that track the price of underlying US securities. They do not confer direct ownership of the actual shares and operate under regulatory regimes such as MiFID II. Investors gain market exposure and liquidity with 24/7 access, but ownership and voting rights remain with the underlying asset structure and issuer rules.

How can European users access Robinhood’s tokenized assets on Arbitrum?

European users access tokenized assets on Arbitrum through EU-compliant token structures that mirror US stocks and ETFs. The program offers low minimums (as low as one euro) and a 0.1% FX fee, with trading available around the clock. Regulators are reviewing the structure to ensure ongoing compliance with MiFID II and local rules.

Key Takeaways

• Scale of tokenization: 493 assets tokenized; total value above $8.5 million; mint volume exceeds $19.3 million; burn activity around $11.5 million.
• Regulatory framework: Tokenized assets are MiFID II-regulated derivatives; EU oversight via Bank of Lithuania; ongoing regulatory scrutiny and clarity efforts.
• Market mix and growth: Stocks dominate the token mix (about 70%), ETFs comprise roughly 24%, with smaller allocations to commodities, crypto ETFs, and US Treasurys; EU expansion broadens investor access via Arbitrum.

Conclusion

Robinhood’s tokenization push on Arbitrum represents a deliberate expansion of real-world assets within crypto markets. With nearly 500 tokenized assets valued above $8.5 million, a growing mint/burn dynamic, and regulatory attention in both the EU and US, the framework aims to balance accessibility with compliance. As regulatory clarity evolves and more assets enter the program, investors should monitor official updates from EU regulators and U.S. policymakers, while considering the role of tokenized RWAs within diversified portfolios.

Publication date: 2025-10-18 | Updated: 2025-10-18

Author: COINOTAG

Sources (plain text): Dune Analytics; Bank of Lithuania; MiFID II regulations; Tom Wan research notes; Robinhood press and regulatory filings; WonderFi acquisition news; U.S. Securities and Exchange Commission regulatory proposals.