Robinhood intends to launch an Ethereum-compatible blockchain, allowing users to trade tokenized stocks. This initiative could disrupt major exchanges such as NYSE, threatening their revenue model as trading moves on-chain.
Galaxy Digital expressed concerns that this tokenization could undermine traditional exchanges’ competitive advantages. They noted that the architecture of Robinhood’s platform resembles other successful blockchain models, capturing all transaction fees.
While 24-hour trading offers flexibility, it may increase volatility for retail investors. Ongoing regulatory uncertainties, particularly regarding tokenized equities in the U.S., pose significant barriers for this shift.
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