Robinhood is seeing a surge of curiosity from non-public firms desperate to tokenize their shares after the agency launched its inventory token platform within the European Union final week.
In a Tuesday interview with Bloomberg Information, CEO Vlad Tenev mentioned the corporate has acquired a wave of requests from non-public companies trying to make their fairness accessible to retail traders by means of blockchain-based tokens on their platform.
“Since our announcement, I’ve had a deluge of inquiries, non-public firms that really wish to entry retail to have their shares tokenized and be part of this revolution,” he mentioned.
At present solely out there within the EU, the platform gives over 200 tokenized US equities tradable 5 days per week. It additionally included a promotional giveaway of non-tradable tokens representing non-public firms like OpenAI and SpaceX.
Tenev mentioned Robinhood’s long-term aim is to convey 1000’s of personal firms onto the platform. “We imagine [this] is a big alternative to resolve one of many largest inequities in capital markets, which is the truth that you could have these huge firms which can be staying non-public longer,” he mentioned.
Associated: Bitcoin, XRP, SOL futures launch on Robinhood
Robinhood’s tokenized platform faces scrutiny
Nevertheless, the rollout has drawn scrutiny. The Financial institution of Lithuania, which regulates Robinhood within the EU, requested clarification on how the tokens are structured. Tenev mentioned the agency welcomes the evaluate.
“They wish to ensure that every part is correct as a result of it’s a brand new modern providing. We’re assured. We predict that these aren’t solely vital, however they’ll face up to the very best type of scrutiny,” he mentioned.
The tokens are technically categorized as derivatives beneath the EU’s Markets in Crypto-Assets Regulation (MiCA) and Markets in Monetary Devices Directive (MiFID) rules. They’re backed by underlying belongings held by US brokers, with tokens minted or burned as customers purchase or promote.
Tenev confirmed the agency is in discussions with regulators within the US and UK, however the platform shouldn’t be but out there in these markets. He believes the US Securities and Trade Fee (SEC) has the authority to greenlight tokenization with out requiring new laws.
“The US shouldn’t be far behind. The chance is simply too giant to disregard. Not only for retail but additionally institutional. And I feel they’re eager. They’re having tokenization roundtables on the SEC, which we’ve been part of,” he mentioned.
As reported, Galaxy Digital has mentioned that Robinhood’s tokenization transfer removes belongings from conventional market channels and brings them onchain, straight challenging the concentrated liquidity and exercise that give main TradFi exchanges just like the NYSE their edge.
Cointelegraph reached out to Robinhood for remark however had not acquired a response by publication.
Associated: Tokenized equity still in regulatory grey zone — Attorneys
Tokenization market stays red-hot
Robinhood’s tokenization transfer comes because the push towards bringing belongings onchain positive factors traction.
On Tuesday, Nasdaq-listed BioSig Applied sciences secured as much as $1.1 billion in funding from an undisclosed institutional investor to help its plan to tokenize the commodities market. The deal consists of $100 million in senior secured convertible debentures and a $1 billion fairness line of credit score.
In different information, the QCD Cash Market Fund (QCDT), a joint initiative by DMZ Finance and QNB, has received approval from the Dubai Monetary Companies Authority (DFSA), turning into the primary tokenized cash market fund established within the Dubai Worldwide Monetary Centre (DIFC).
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