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 guide the real-world asset tokenization market within the US and overseas.
Whole internet income climbed 45% year-on-year to $989 million, whereas internet revenue elevated by 105% to $386 million, Robinhood stated in its earnings assertion on Wednesday.
Regardless of beating Wall Avenue 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 various property
“We imagine tokenization is the most important innovation our business has seen previously 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 important focus within the US market can be to tokenize various property that have been “beforehand inaccessible.”
“Personal markets and associated real-world property are alternatives that don’t exist up till now,” and “we’re working with regulators to make that potential.”
Tenev was referring to every little thing from personal shares and enterprise capital funds to actual property that has sometimes been off-limits to retail traders as a consequence of regulatory and liquidity boundaries.
It comes nearly two months after Robinhood’s $200 million acquisition of crypto alternate Bitstamp, which is ready to play a pivotal position within the firm’s tokenization technique.
Robinhood’s tokenization choices have raised authorized considerations
Tenev stated he has seen sturdy curiosity from builders desirous to tokenize firm property on Robinhood since unveiling the tokenization technique in Cannes, France, late final month:
“Since our occasion, we’ve simply obtained heaps and plenty of calls from builders that both wish to tokenize the shares of their very own firms or in any other case bounce on the tokenization of real-world property revolution and accomplice with us.”
Robinhood has already issued personal fairness tokens in Europe that resemble OpenAI and SpaceX shares.
Nevertheless, the tokenization choices not too long ago sparked a authorized inquiry in Lithuania, whereas OpenAI warned that Robinhood’s OpenAI token doesn’t resemble precise fairness within the firm.
Robinhood extra outfitted 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 property 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 rivals or blockchain-native corporations are “actually going after this particular alternative.”
“There’s a variety of chains on the market that wish to construct the perfect chain for degen merchants, however I feel the chance for real-world property and the distinctive traits that they’ve […] I don’t suppose anybody else is tackling as straight.”
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 price of real-world property, RWA.xyz information exhibits.
Ethereum layer 2 ZKsync Period is available in second with $2.4 billion, accounting for a close to 19% market share.
Journal: Will Robinhood’s tokenized shares REALLY take over the world? Execs and cons
