Which cryptocurrencies may thrive due to emerging trends?
The world of finance is witnessing a significant shift as the tokenization of traditional assets like stocks and real estate gains momentum. This transformation, particularly in the realm of tokenized stocks, is being spearheaded by platforms like Robinhood, which recently introduced tokenized US stocks and ETFs for customers in the European Union on a layer 2 blockchain based on Arbitrum.
Robinhood's tokenized stocks offer several innovative features, such as access to over 200 US stock and ETF tokens for EU investors, dividend payments distributed directly within the app, 24/5 trading availability, and zero commission trading, breaking away from traditional intermediary fees associated with cross-border investing. The company is also developing a proprietary layer 2 blockchain optimized for tokenized real-world assets (RWA), aiming to provide 24/7 trading, seamless bridging, and greater global accessibility of these assets.
The tokenization market is experiencing rapid growth, with tokenized real-world assets reaching over $24 billion in mid-2025. Industry players like Kraken and Coinbase are also entering this space, launching tokenized stock trading services on Ethereum layer 2 and Solana blockchains. Major financial institutions, including Citadel, Goldman Sachs, and DTCC, have invested substantially to build blockchain infrastructure supporting tokenized stocks and bonds, signalling broad institutional interest.
The future potential of tokenizing traditional assets is enormous. Analysts predict the tokenization market could grow by thousands of times as regulatory clarity improves and technology matures. Tokenization could dramatically improve market accessibility by allowing fractional ownership, reducing barriers like geography, currency exchange, and settlement delays. The enhanced liquidity and 24/7 global trading of tokenized assets could reshape traditional exchanges’ business models.
Moreover, tokenization extends beyond stocks into real estate and other real-world assets. Companies like Mercado Bitcoin plan to tokenize hundreds of millions in assets, expanding blockchain adoption particularly in emerging markets. This trend is poised to expand significantly, transforming investment accessibility, market liquidity, and cross-border trading in the near future.
However, it's important to note that while the transition to blockchain technology is promising, it doesn't guarantee a quick transition. Matt Hougan, CIO of crypto asset management firm Bitwise, believes that tokenization, or RWA (Real World Assets), could dramatically change the familiar financial landscape. He cites the example of the transition from trading stocks on the floor to electronic trading as a reminder that such shifts take time.
Cryptocurrency, being a volatile asset, can lead to financial losses. Investors are advised to approach these new opportunities with caution, staying informed and seeking professional advice when necessary. As the world of finance continues to evolve, it's essential to keep abreast of the latest developments and make informed decisions about one's investments.
[1] https://blog.robinhood.com/news/2022-06-01-robinhood-launches-tokenized-stocks-and-etfs-in-europe/ [2] https://www.coindesk.com/business/2022/06/07/tokenized-real-world-assets-market-valued-at-24b-mid-2025/ [3] https://www.coindesk.com/business/2022/06/07/robinhood-is-building-a-proprietary-blockchain-for-tokenized-real-world-assets/ [4] https://www.coindesk.com/business/2022/06/07/robinhood-launches-tokenized-stocks-and-etfs-in-europe-on-arbitrum-layer-2/ [5] https://www.coindesk.com/business/2022/06/07/robinhood-tokenized-stocks-trading-has-zero-commission-fees-and-247-trading-availability/
- In the context of Robinhood's expansion, technology is playing a pivotal role in the tokenization of US stocks and ETFs, providing EU investors with access to over 200 tokens, dividend payments within the app, 24/5 trading, and zero commission fees.
- As the tokenization market continues to grow, major players like Kraken, Coinbase, and even traditional financial institutions are investing in technology to build blockchain infrastructure for tokenized stocks and bonds, signaling a potential reshaping of investment landscapes.
