A New Era of Tokenization? Robinhood Proposes Unified RWA Framework

Robinhood Urges SEC to Create Unified Rules for Tokenized Real-World Assets

Robinhood has submitted a detailed 42-page proposal to the U.S. Securities and Exchange Commission (SEC), calling for the establishment of a comprehensive federal regulatory framework to oversee tokenized real-world assets (RWAs). The proposal aims to update the U.S. financial system by integrating blockchain technology into traditional asset markets.

Major Points from Robinhood’s Proposal:

• Equal Legal Status for Tokenized Assets: Robinhood recommends that tokenized versions of conventional financial instruments—such as stocks, bonds, and property—be legally recognized as equivalent to their underlying assets. This would simplify compliance and promote broader use of blockchain in finance.

• Launch of Real World Asset Exchange (RRE): The company plans to introduce the RRE, a platform that combines off-chain trade execution with on-chain settlement. Built on blockchain networks like Solana and Base, the RRE aims for ultra-fast trade matching (under 10 microseconds) and processing speeds of up to 30,000 transactions per second. The goal is to shift from T+2 to real-time settlement (T+0) and cut trading costs by up to 30% annually.

• National Compliance Standards: The proposal advocates for a unified national system to replace the patchwork of state-level securities laws. This would allow broker-dealers to issue and trade tokenized securities under a single, streamlined regulatory framework, removing the need for parallel systems.

• Integrated Compliance Tools: Robinhood also plans to incorporate advanced compliance solutions—such as KYC and AML checks—by partnering with companies like Jumio and Chainalysis to meet both domestic and international regulatory standards.

Robinhood CEO Vlad Tenev highlighted the significance of tokenizing RWAs, calling it a paradigm shift in how institutions manage assets. The company estimates that the market for tokenized real-world assets could grow to $30 trillion by the end of the decade.

This initiative reflects a growing trend across the financial industry, where legacy institutions are exploring blockchain as a tool to boost efficiency, reduce costs, and improve transparency. Robinhood’s proposal could be a major step toward merging traditional finance with decentralized technologies.