Robinhood submitted a detailed proposal to the SEC to establish transparent tokenized real-world asset (RWA) rules. These assets refer to digital tokens backed by physical assets. The goal is to enhance their regulation and trading in the U.S.
Robinhood & Vision: Modernizing Tokenized Assets
Robinhood’s proposal requests that the SEC allow tokenized assets to be treated as equivalents of real-world assets. Tokens for stocks or bonds would be the legal equivalent of real-world instruments. The plan calls for establishing the Robinhood RWA Exchange (RRE). Trading is matched off-chain and settled on-chain for quicker, cleaner transactions.
The RRE will operate on the Solana and Base blockchains. It is designed to achieve trade matching in under 10 microseconds and 30,000 transactions per second. Robinhood is introducing KYC and AML validation using Chainalysis and Jumio to satisfy stringent compliance requirements. The proposal contemplates replacing state regulation with one federal framework for trading tokenized assets.
Robinhood’s RRE platform might reduce settlement time from two days to practically instantaneous. This could save up to 30% on annual trading expenses. It pairs high-speed off-chain trade matching with on-chain settlement. The two-chain structure on Solana and Base enables very high throughput and low latency.
CEO Vlad Tenev sees tokenization as an opportunity to open markets to more investors under transparent rules. This transformation can revolutionize U.S. capital markets by enabling faster, cheaper, and more accessible asset trading. A shift in asset management and trading is evident as institutional investors become interested.
Market and Industry’s Reaction
Robinhood’s proposal has sparked mixed reactions across the industry and markets. Some see it as a breakthrough that could bring clarity and boost institutional interest in tokenized assets. Others remain cautious about regulatory hurdles and tax implications.
The crypto community is watching closely as Arbitrum and Solana position themselves as key partners in this tokenization push. Robinhood’s stock rose after the announcement, reflecting cautious optimism among investors.
Experts predict the tokenized RWA market could reach $30 trillion by 2030, signaling huge growth potential. CEO Vlad Tenev highlighted tokenization’s efficiency, saying, “Creating a coin takes minutes, unlike traditional IPOs.” This shift could reshape both crypto and traditional finance sectors.
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