Robinhood filed a proposal with the SEC for a national real-world asset tokenization framework and plans to launch a new trading platform.
Robinhood submitted a 42-page proposal to the US Securities and Exchange Commission (SEC) to establish a national framework for regulating tokenized real-world assets (RWAs).
Forbes reported on May 20 that the brokerage is endeavoring to modernize financial infrastructure by ensuring that tokenized assets are legally equivalent to their traditional counterparts and by facilitating compliant on-chain settlement.
Robinhood also disclosed its intentions to establish the Real World Asset Exchange (RRE) in the proposal.
This trading platform will provide off-chain transaction matching and on-chain settlement to enhance transparency and efficiency.
Robinhood advocates implementing uniform federal standards to supplant the current patchwork of state-level securities regulations.
Additionally, the platform would incorporate Know Your Customer (KYC) and Anti-Money Laundering (AML) tools through partners such as Chainalysis and Jumio to satisfy global compliance requirements.
Robinhood Requests Token-Asset Equivalence
The proposal’s emphasis on token-asset equivalence is a critical aspect.
For example, a token representing a US Treasury bond would be considered the bond itself, rather than a derivative or synthetic product, under Robinhood’s plan.
This would enable institutions and broker-dealers to manage tokenized RWAs within the current regulatory framework, potentially simplifying the custody, trading, and settlement processes.
Franklin Elevator’s proposal overview specifies that RRE would be constructed on a dual-chain architecture that employs Base and Solana.
The system is intended to integrate on-chain settlement with high-frequency off-chain transaction matching.
Franklin Elevator stated that Robinhood anticipates the platform will accomplish a throughput of up to 30,000 transactions per second and a matching latency of less than 10 microseconds.
This could reduce trading costs by an estimated 30% annually by compressing the standard settlement time of the US capital markets from T+2 to T+0.
“RWA tokenization is a novel approach to institutional asset allocation.” Vlad Tenev, CEO of Robinhood, expressed his dedication to spearheading this trend within a compliant framework.
Cointelegraph contacted Robinhood for comment; however, they had not responded by the time of publication.
Tokenization Is Gaining Momentum
Robinhood’s proposal is being made in the context of a resurgence in interest in RWA tokenization, which was highlighted by prominent figures from both traditional finance and crypto last week.
BlackRock submitted a filing on April 30 to establish a blockchain-based share class for its $150 billion Treasury Trust Fund.
This will enable a digital ledger to replicate investor ownership.
Libre disclosed its intention to tokenize $500 million in Telegram debt through its newly established Telegram Bond Fund on the same day.
MAG, a UAE real estate firm, and Mavryk, a blockchain provider, executed a $3 billion tokenization agreement with MultiBank Group on May 1.
“The most recent increase is not coincidental.” Eric Piscini, CEO of Hashgraph, stated to Cointelegraph, “It is occurring because everything is aligning.”
“In significant markets, regulations are becoming increasingly transparent.”
The technology is prepared to expand, accelerate, and become more robust. He stated, “Major players are engaging in this practice.”
