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HOOD Bets on DeFi, Tokenization & AI Trading in Global Expansion Push
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Key Takeaways
HOOD launched Robinhood Chain, an Arbitrum-based Layer 2 for tokenized assets and DeFi apps.
Robinhood rolled out Stock Tokens in its wallet across 120 countries, subject to local availability.
HOOD is expanding futures in Europe and adding AI-powered Agentic Trading for crypto in the U.S.
Last week, Robinhood Markets (HOOD - Free Report) used its “Robinhood Presents: The World is Flat” keynote in London to outline one of its broadest product and international expansion pushes yet. This positions the company more deeply in crypto, tokenized assets, decentralized finance (DeFi) and AI-powered trading.
Robinhood Chain Goes Live
The biggest announcement was the public main net launch of Robinhood Chain, an Arbitrum-based Layer 2 blockchain built for tokenized real-world assets and DeFi applications. The chain is designed to support lending, borrowing and other on-chain financial products, with partners including Uniswap, Pleiades, Alchemy, BitGo and Chainlink.
Robinhood said the platform gives builders a permissionless environment while connecting directly with its growing crypto and wallet ecosystem.
Robinhood launched Stock Tokens in the Robinhood Wallet across more than 120 countries, subject to local availability. These products offer eligible users 24/7 economic exposure to certain U.S. stocks and ETFs through tokenized instruments while also allowing use across DeFi applications such as lending pools and collateralized activity. Nonetheless, these tokens do not provide legal or beneficial ownership of the underlying shares.
In the United States, HOOD is rolling out Robinhood Earn, a self-custody lending product that allows eligible users to lend USDG through the Morpho protocol at an estimated 7% APY. The product is supported by partners, including Steakhouse, Ethena, Spark and Maple.
Robinhood Goes Global With New Launches
Robinhood is expanding perpetual futures in Europe beyond crypto to commodities, ETFs and foreign exchange, including gold, silver, QQQ, EUR/USD, WTI and Brent crude, with up to 10X leverage. In the United States, the company is adding maker order types for crypto traders, with fees as low as 0% depending on volume.
The company also confirmed plans to launch crypto trading in the U.K., expand services in Canada following its WonderFi acquisition and eventually offer brokerage services in Singapore. Agentic Trading is being extended to crypto, allowing eligible U.S. users to connect AI agents to Robinhood data and automate strategies within user-defined guardrails. Earlier in May, it rolled out AI agents for trading and credit card purchases.
Our Take on HOOD’s Expansion Initiatives
These announcements broaden Robinhood’s revenue base beyond trading. Over time, crypto trading, tokenized assets, lending, futures, subscriptions and international expansion are expected to lift transaction-based revenues, assets under custody and customer engagement.
As adoption scales, Robinhood’s ecosystem strategy will likely support higher average revenue per user and more recurring financial activity across markets.
Over the past three months, Robinhood shares have soared 61.8%, massively outperforming the industry’s growth of 11.1%.
Robinhood’s Peers Are Also Diversifying Their Businesses
Similar to HOOD, its two close peers, Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) , are expanding and diversifying their revenue base.
Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. Schwab’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Interactive Brokers is expanding through global market access, high-yield cash balances, securities lending, institutional services, retirement accounts and advisor solutions. Interactive Brokers’ interest income, international reach and technology platform reduce trading-commission reliance while supporting scalable growth.
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Image: Bigstock
HOOD Bets on DeFi, Tokenization & AI Trading in Global Expansion Push
Key Takeaways
Last week, Robinhood Markets (HOOD - Free Report) used its “Robinhood Presents: The World is Flat” keynote in London to outline one of its broadest product and international expansion pushes yet. This positions the company more deeply in crypto, tokenized assets, decentralized finance (DeFi) and AI-powered trading.
Robinhood Chain Goes Live
The biggest announcement was the public main net launch of Robinhood Chain, an Arbitrum-based Layer 2 blockchain built for tokenized real-world assets and DeFi applications. The chain is designed to support lending, borrowing and other on-chain financial products, with partners including Uniswap, Pleiades, Alchemy, BitGo and Chainlink.
Robinhood said the platform gives builders a permissionless environment while connecting directly with its growing crypto and wallet ecosystem.
Stock Tokens & Onchain Lending Expand HOOD’s Access
Robinhood launched Stock Tokens in the Robinhood Wallet across more than 120 countries, subject to local availability. These products offer eligible users 24/7 economic exposure to certain U.S. stocks and ETFs through tokenized instruments while also allowing use across DeFi applications such as lending pools and collateralized activity. Nonetheless, these tokens do not provide legal or beneficial ownership of the underlying shares.
In the United States, HOOD is rolling out Robinhood Earn, a self-custody lending product that allows eligible users to lend USDG through the Morpho protocol at an estimated 7% APY. The product is supported by partners, including Steakhouse, Ethena, Spark and Maple.
Robinhood Goes Global With New Launches
Robinhood is expanding perpetual futures in Europe beyond crypto to commodities, ETFs and foreign exchange, including gold, silver, QQQ, EUR/USD, WTI and Brent crude, with up to 10X leverage. In the United States, the company is adding maker order types for crypto traders, with fees as low as 0% depending on volume.
The company also confirmed plans to launch crypto trading in the U.K., expand services in Canada following its WonderFi acquisition and eventually offer brokerage services in Singapore. Agentic Trading is being extended to crypto, allowing eligible U.S. users to connect AI agents to Robinhood data and automate strategies within user-defined guardrails. Earlier in May, it rolled out AI agents for trading and credit card purchases.
Our Take on HOOD’s Expansion Initiatives
These announcements broaden Robinhood’s revenue base beyond trading. Over time, crypto trading, tokenized assets, lending, futures, subscriptions and international expansion are expected to lift transaction-based revenues, assets under custody and customer engagement.
As adoption scales, Robinhood’s ecosystem strategy will likely support higher average revenue per user and more recurring financial activity across markets.
Over the past three months, Robinhood shares have soared 61.8%, massively outperforming the industry’s growth of 11.1%.
Image Source: Zacks Investment Research
HOOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Robinhood’s Peers Are Also Diversifying Their Businesses
Similar to HOOD, its two close peers, Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) , are expanding and diversifying their revenue base.
Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. Schwab’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Interactive Brokers is expanding through global market access, high-yield cash balances, securities lending, institutional services, retirement accounts and advisor solutions. Interactive Brokers’ interest income, international reach and technology platform reduce trading-commission reliance while supporting scalable growth.