Robinhood submitted a 42-page proposal to the US Securities and Exchange Commission (SEC), calling for a national framework to regulate tokenized real-world assets (RWAs).<\/p>\n
The brokerage is seeking to modernize financial infrastructure by making tokenized assets legally equivalent to their traditional counterparts and enabling compliant onchain settlement, Forbes reported<\/a> on May 20.<\/p>\n In the proposal, Robinhood also revealed plans for creating the Real World Asset Exchange (RRE), a trading platform offering offchain trade matching and onchain settlement for efficiency and transparency.<\/p>\n Robinhood is advocating for uniform federal standards to replace the patchwork of state-level securities regulations that currently apply. The platform would also integrate Know Your Customer (KYC)<\/a> and Anti-Money Laundering (AML)<\/a> tools through partners like Jumio and Chainalysis to meet global compliance expectations.<\/p>\n Related: <\/strong><\/em>Central banks testing smart contract toolkit under BIS Project Pine<\/strong><\/em><\/a><\/p>\n A key feature of the proposal is the push for token-asset equivalence. Under Robinhood\u2019s plan, a token representing a US Treasury bond, for instance, would be treated as the bond itself, not a derivative or synthetic product.<\/p>\n That would allow institutions and broker-dealers to handle tokenized RWAs<\/a> within the existing regulatory system, potentially streamlining custody, trading and settlement processes.<\/p>\n Source: Cointelegraph<\/em><\/p>\n Technically, RRE would be built on a dual-chain architecture utilizing Solana and Base, according<\/a> to an overview of the proposal by Franklin Elevator. The system is designed to combine high-frequency offchain trade matching with onchain settlement.<\/p>\n Franklin Elevator said Robinhood projects the platform will achieve sub-10 microsecond matching latency and throughput of up to 30,000 transactions per second.<\/p>\n This could compress the US capital markets\u2019 standard settlement time from T+2 to T+0, cutting trading costs by an estimated 30% annually.<\/p>\n \u201cRWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework,\u201d Robinhood CEO Vlad Tenev said.<\/p>\n Cointelegraph reached out to Robinhood for comment, but they hadn\u2019t responded by publication time. <\/p>\n Related: <\/strong><\/em>SEC Chair: Blockchain \u2018holds promise\u2019 of new kinds of market activity<\/strong><\/em><\/a><\/p>\n Robinhood\u2019s proposal comes amid a renewed wave of interest in RWA tokenization, with major players from both traditional finance and crypto making headlines last week.<\/p>\n On April 30, BlackRock\u00a0filed to create a blockchain-based share class<\/a> for its $150 billion Treasury Trust Fund, allowing a digital ledger to mirror investor ownership. On the same day, Libre revealed plans to tokenize $500 million in Telegram debt via its new Telegram Bond Fund.<\/p>\n On May 1, MultiBank Group\u00a0inked a $3 billion tokenization deal<\/a> with UAE real estate firm MAG and blockchain provider Mavryk.<\/p>\n \u201cThe recent surge isn\u2019t arbitrary. It\u2019s happening because everything\u2019s lining up,\u201d Eric Piscini,\u00a0CEO of Hashgraph, told Cointelegraph<\/a>. \u201cRules are getting clearer in major markets. The tech is stronger, faster, and ready to scale. And big players are actually doing it,\u201d he added.<\/p>\nRobinhood asks for token-asset equivalence<\/h2>\n
Tokenization gains momentum<\/h2>\n