Crypto-friendly trading firm Robinhood has proposed a new framework to the United States Securities and Exchange Commission (SEC) that would support the tokenization of real-world assets (RWAs). The goal is to make private investments such as shares in startups or real estate more accessible to everyday investors, not just wealthy or accredited individuals.
This is part of a broader push to modernize U.S. securities markets. That means updating how financial assets like stocks and bonds are handled, using technology like blockchain to make investing faster, cheaper, safer, and more inclusive.
Robinhood Plans for RWA Tokenization
Robinhood wants to create a new registration process that would make it easier for companies to offer digital versions of their assets to the public.
Currently, U.S. regulations often limit access to private markets. Most people can’t invest in early-stage companies or certain high-value assets unless they meet strict financial requirements. Robinhood believes tokenization can change that by allowing these assets to be broken into smaller, digital pieces (or tokens), which regular investors can buy and sell more easily.
One of the biggest proposals is to replace the current state-by-state rules with a national legal framework for tokenized securities. The crypto trading firm asks for one clear set of rules that apply across the whole country instead of different rules in each state. It also says that digital tokens representing things like stocks or government bonds should be treated just like the real thing, not as special or complicated financial products. This would make it easier to understand and use these tokens.
Finally, the crypto trading platform introduced an idea for a new platform called the Real World Asset Exchange (RRE). It would speed up trading by matching orders off the blockchain while keeping settlement on the blockchain for transparency. The platform would include tools for identity checks and anti-money laundering, using partners like Jumio and Chainalysis to meet global standards.
Robinhood and SEC
Recently, the U.S. Securities and Exchange Commission (SEC) decided to stop its investigation into Robinhood’s cryptocurrency division. This move comes as Robinhood works to grow its crypto offerings in the U.S. The decision reflects a more open environment between Robinhood and regulators, which supports the company’s current push for clearer rules around tokenizing real-world assets.
Meanwhile, the Robinhood crypto trading platform has been extremely successful in the last year, and its management team hopes to increase the company’s profits if the SEC approves its proposal.
