Prediction: Robinhood Will Launch Tokenized Stock Trading in the U.S. Before the End of 2027
The tokens the brokerage sells overseas wouldn't qualify under the SEC's new order. The company started fixing that before the order came.
Overview
The Securities and Exchange Commission just handed Robinhood Markets (NASDAQ:HOOD) something its CEO has campaigned for since the start of 2025. On Sept. 17, the agency issued what it calls an "Innovation Exemption," an order that lets qualifying venues trade tokenized versions of U.S. stocks for five years without registering as stock exchanges. Robinhood shares climbed 5% that day, and, as of this writing, the growth stock trades at about $120.
However, the order only covers tokens that give holders the same rights as the real shares. The stock tokens Robinhood sells overseas today don't -- the company's own product disclosures refer to its European tokens as "derivative contracts" that track stock prices "without granting rights to them."
Details
Can Robinhood build a version that qualifies, and have it trading in the U.S. before the end of 2027? I think it can.
Source
Originally published at www.fool.com.