Robinhood Markets (HOOD) says it is developing a blockchain-based program that will allow traders and investors in Europe to access U.S. financial assets and crypto tokenization.
Leading blockchains such as Ethereum (ETH) and Solana (SOL) are being considered by Robinhood for the new platform, which will be launched in partnership with an unnamed digital asset firm. Tokenized assets have become a dominant area for traditional financial firms to push further into cryptocurrencies.
Several companies have launched tokenized funds recently, with some analysts forecasting that the market will reach $23 trillion by 2033. Tokenization refers to the process of creating a digital token for a traditional asset on the blockchain, boosting data security and allowing for faster transactions and increased liquidity.
Framework Needed
In January, Robinhood CEO Vlad Tenev criticized U.S. regulations that have yet to provide a clear framework and rules for registering security tokens. Tenev has also said that he wants to use tokenization to open private-market investment opportunities up to individual retail investors.
While it primarily offers stock trading on its online platform, Robinhood Markets has been pushing further into crypto investing. Last year, Robinhood bought privately held cryptocurrency exchange Bitstamp for $200 million in cash, the largest deal in its history. Analysts said the purchase of Bitstamp puts Robinhood in direct competition with the largest cryptocurrency exchanges, Binance and Coinbase Global (COIN).
Hood stock has risen 43% this year.
Is HOOD Stock a Buy?
The stock of Robinhood Markets has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 14 Buy and six Hold recommendations issued in the last three months. The average HOOD price target of $60.94 implies 14.42% upside from current levels.
