Buying and selling platform Robinhood’s crypto income elevated 98% year-on-year to $160 million within the second quarter as CEO Vlad Tenev doubled down on plans to steer the real-world asset tokenization market within the US and overseas.
Whole internet income climbed 45% year-on-year to $989 million, whereas internet earnings elevated by 105% to $386 million, Robinhood stated in its earnings assertion on Wednesday.
Regardless of beating Wall Road expectations, firm shares barely retraced in after-hours buying and selling.
Crypto volumes additionally elevated 32% within the quarter to $28 billion because the crypto market cap grew 21.7% to $3.36 trillion.
Robinhood needs to tokenize hard-to-reach different belongings
“We imagine tokenization is the most important innovation our business has seen up to now decade,” the CEO stated after Robinhood late final month rolled out a tokenization-focused layer 2 blockchain — Robinhood Chain — for inventory buying and selling in Europe.
Tenev stated Robinhood’s fundamental focus within the US market can be to tokenize different belongings that have been “beforehand inaccessible.”
“Personal markets and associated real-world belongings are alternatives that don’t exist up till now,” and “we’re working with regulators to make that attainable.”
Tenev was referring to every part from non-public shares and enterprise capital funds to actual property that has usually been off-limits to retail buyers resulting from regulatory and liquidity obstacles.
It comes virtually two months after Robinhood’s $200 million acquisition of crypto trade Bitstamp, which is ready to play a pivotal position within the firm’s tokenization technique.
Robinhood’s tokenization choices have raised authorized issues
Tenev stated he has seen robust curiosity from builders desirous to tokenize firm belongings on Robinhood since unveiling the tokenization technique in Cannes, France, late final month:
“Since our occasion, we’ve simply obtained heaps and many calls from builders that both need to tokenize the shares of their very own corporations or in any other case soar on the tokenization of real-world belongings revolution and accomplice with us.”
Robinhood has already issued non-public fairness tokens in Europe that resemble OpenAI and SpaceX shares.
Nevertheless, the tokenization choices just lately sparked a authorized inquiry in Lithuania, whereas OpenAI warned that Robinhood’s OpenAI token doesn’t resemble precise fairness within the firm.
Robinhood extra geared up for tokenization, CEO argues
Requested how Robinhood’s tokenization platform would outscale public blockchains, Tenev pointed to the corporate’s 25 million US customers and the $1 trillion in belongings that they already maintain below custody.
“[That] going to be very, very tough for others to copy,” Tenev stated, noting that none of Robinhood’s opponents or blockchain-native companies are “actually going after this particular alternative.”
“There’s numerous chains on the market that need to construct one of the best chain for degen merchants, however I believe the chance for real-world belongings and the distinctive traits that they’ve […] I don’t assume anybody else is tackling as immediately.”
Associated: eToro to tokenize 100 hottest US shares on Ethereum
Whereas Tenev’s feedback have been directed at layer 2s, Ethereum continues to dominate the crypto tokenization market, securing practically $7 billion value of real-world belongings, RWA.xyz knowledge reveals.
Ethereum layer 2 ZKsync Period is available in second with $2.4 billion, accounting for a close to 19% market share.
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