Robinhood Markets (NASDAQ:HOOD) has made a significant push into crypto, unveiling a suite of innovative products during its event in Cannes, France. The company revealed a range of new tools designed to make investing more accessible and intuitive.
As part of its global expansion strategy, Robinhood is extending its services to over 400 million people across 30 countries in the EU and EEA. The stock gained after the update.
Also Read: Robinhood Stock Falls After Analysts Cite Weak Crypto Volumes And Market Headwinds In Q2 Outlook
The new offerings include stock and ETF tokens, now available in the EU. These tokens allow users to gain exposure to U.S. equities through Robinhood Stock Tokens.
These tokens come with zero commissions and offer dividend support alongside 24/5 access.
With this launch, Robinhood’s European app transitions from a solely crypto-focused app to a comprehensive investment platform powered by crypto, marking a significant expansion.
Vlad Tenev, Robinhood’s chairman and CEO, emphasized the company’s aim to lay the groundwork for crypto to serve as the backbone of the global financial system. Additionally, Johann Kerbrat, GM and SVP of Robinhood Crypto, highlighted that crypto was initially built for engineers and hasn’t been easily accessible to most people. “We’re onboarding the world to crypto by making it as easy to use as possible,” said Kerbrat.
Robinhood has also introduced crypto perpetual futures to the EU, offering up to 3x leverage for eligible users. This launch is designed to provide active traders with more sophisticated tools in a user-friendly environment. Furthermore, the company is launching crypto staking in the U.S., beginning with Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), allowing customers to participate in blockchain ecosystems and earn competitive rewards.
The expanded product suite includes features such as an instant boost on crypto deposits, a new credit card offering cashback that can be used to buy crypto, and a Cortex AI-powered assistant that helps users understand market trends. Smart Exchange Routing will also help users get the best price for crypto trades by evaluating multiple exchanges.
Additionally, Robinhood has unveiled its upcoming Layer 2 blockchain, built on Arbitrum. This blockchain will enable seamless trading and self-custody and power tokenized stocks and real-world assets in the future.
Tokenization in crypto involves creating blockchain-based representations of assets, allowing investors to gain price exposure without holding the underlying assets.
Coinbase (NASDAQ:COIN) and Kraken are pursuing tokenized stock trading to challenge established platforms such as Robinhood and eToro.
Republic, a New York-based investment platform, has begun offering tokenized exposure to SpaceX shares, providing retail investors access to private company stakes that were previously reserved for large, accredited investors.
The digital tokens, which give exposure to share performance without granting direct ownership, will soon be available for purchase. Republic plans to expand this offering to other private giants like OpenAI, Anthropic, Stripe, X, Waymo.
This announcement comes as the U.S. crypto industry experiences a more favorable regulatory environment under President Donald Trump’s administration.
Robinhood Markets stock is up 131% year-to-date.
Robinhood reported first-quarter earnings of 37 cents per share in April, which beat the analyst consensus estimate of 32 cents. Quarterly revenue of $927 million (up from $618 million a year ago) beat the analyst consensus estimate of $922.53 million.
Transaction-based revenues increased 77% to $583 million as Cryptocurrency revenue of $252 million ( up 100% Y/Y), Options revenue of $240 million (up 56% Y/Y), and Equities revenue of $56 million (up 44% Y/Y).
Price Action: HOOD stock is trading 10.5% higher at $91.82 as of last check on Monday.
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