Robinhood is about to shake up traditional finance with the launch of Robinhood Chain, a layer 2 blockchain based on Arbitrum Orbit. The aim: to enable 24/7 tokenized stock trading, with instant settlement, decentralized custody, and potential use in the DeFi ecosystem.

What does Robinhood Chain allow?

24/7 trading of US stocks and ETFs as tokens. Real-time settlement, bypassing traditional clearinghouses. Programmability of assets: automated dividend payments, use as collateral in DeFi protocols, etc. Personal custody: users can hold their own tokenized assets.

This system is based on wrapping real shares held by a partner broker, ensuring they are truly backed by the underlying securities.

A threat to traditional markets?

Traditional exchanges may see a leak of trading volume to these new always-open markets, especially outside of regular trading hours.
Firms like Galaxy Digital believe revenues from transaction fees and market data could be heavily impacted.

At the same time, Robinhood will capture the entire value chain: execution, settlement, custody, fees, data… A model inspired by Coinbase Base that could prove highly lucrative.

But volatility outside regular hours and regulatory uncertainties concern authorities. If this innovation launches in Europe, it will still have to convince the SEC before expanding to the US.

Why Europe first?

The EU’s more flexible regulatory framework allows Robinhood to test this model without waiting for American approval.
The service will first be offered through the European subsidiary, with an integrated DeFi interface, before a potential wider rollout.

Market reactions

The announcement pushed up Robinhood’s share price, as well as the ARB token from Arbitrum.
Investors see this strategy as a way to reinvent the brokerage business model, capturing value in a fully digital environment.

‍ And at InteractivTrading.com?

With markets open 24/7, we’ll need an army of coaches to support all our VIPs day and night.
Between 3am alerts, tokenized dividends, and real-time analysis, our mission is quickly becoming nonstop.

"Coach, I got an alert on my tokenized Tesla stock at 4am. Is that bad?"
"Are the briefings on Tokyo time or Miami time now?"

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Summary

Opportunity	Risk
Non-stop 24/7 trading	Increased volatility outside regular hours
Instant settlement	Still unclear regulatory framework
Programmability (dividends, collateral, etc.)	Traditional markets destabilized
Personal custody possible	Complexity for non-expert investors

And you, what do you think?
Financial revolution… or tech nightmare coming?

The IVT Team July 7, 2025