Robinhood Files With SEC Plan to Legalize Tokenized Assets Across the US

Robinhood has filed a 42-page proposal with the U.S. Securities and Exchange Commission (SEC), seeking a federal framework to enable the legal issuance and trading of tokenized real-world assets (RWAs) across the United States. The company’s plan outlines a structural approach aimed at integrating tokenized markets within the existing financial system.

Robinhood Plan to Legalize Tokenized Assets

According to Forbes, Robinhood’s proposal seeks to modernize U.S. securities regulation by establishing token-asset equivalence. This would mean that a digital token representing an asset, such as a government bond or equity, would be treated the same as the asset itself.

Robinhood argues that this model would eliminate the need for duplicate regulatory systems and would allow broker-dealers to trade and custody tokenized assets under existing securities laws. The company aims to streamline trading operations by reducing ambiguity around digital asset classification.

The proposal also requests the creation of a unified national framework to replace the current state-by-state compliance requirements for securities trading. Robinhood believes that consistent federal regulation could help align digital asset practices with traditional market structures and encourage broader institutional participation.

Real World Asset Exchange Platform

The proposal will include Robinhood’s launch of a new trading platform called the Real World Asset Exchange (RRE). On this platform users will be able to store and use tokenized assets such as funds, bonds, commodities and real estate. Offchain matching engines would be used for speeding, while onchain settlement systems would be used for transparency.

In integrating Know Your Customer (KYC) and Anti Money Laundering (AML) protocols the RRE will meet global compliance requirements, according to Robinhood. Through technology partners Jumio and Chainalysis, these tools will be provided.

As per a summary by Franklin Elevator, the platform will operate on the dual chain architecture which is derived from the Solana and Base blockchains. With this structure, the DLT can achieve transaction speeds and low latency of up to 30k transactions per second and sub 10 microseconds trade matching.

SEC Proposal Focuses on Legal Structure

Robinhood is not introducing new blockchain technology with this proposal. Instead, the focus is on creating a regulatory foundation that permits digital tokens to function within the current U.S. financial and legal environment.

Concurrently, Robinhood is also reportedly acquiring Bitstamp, a European crypto exchange, in parallel with its regulatory proposal. Neither company appear to have officially come forward to confirm the deal, but according to industry sources, it could be part of a larger push to bolster its crypto infrastructure, following the purchase of WonderFi.

If accepted by the SEC, the proposal would allow financial institutions to treat tokenized RWAs the same as traditional securities. This could simplify processes around asset settlement, record-keeping, and compliance.

Broader Interest in Tokenization

The move is a timely one amid the greater focus on tokenized assets from digital asset firms and traditional financial institutions alike. On April 30, BlackRock submitted plans to create a blockchain-based share class for its Treasury Trust Fund.

Also in April, Libre announced it would tokenize $500 million in Telegram debt through its Telegram Bond Fund. On May 1, MultiBank Group signed a $3 billion tokenization agreement with MAG, a UAE-based real estate firm, and blockchain developer Mavryk.

Robinhood’s proposal positions the company among a group of firms seeking to build compliant platforms for tokenized assets. However, the SEC has not yet responded to the filing. The agency has maintained a cautious stance on digital assets in previous regulatory actions.

Despite the uncertainty, Robinhood CEO Vlad Tenev remains committed to the approach. He said,

“RWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework.”

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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