Robinhood has submitted a proposal to the U.S. Securities and Exchange Commission (SEC), urging the creation of a standardized regulatory framework for tokenized real-world assets (RWAs). The 42-page document outlines plans for a new trading platform designed to enhance efficiency and transparency in asset tokenization.
According to a May 20 report by *Forbes*, the brokerage firm aims to modernize financial infrastructure by ensuring tokenized assets hold the same legal status as their traditional counterparts while enabling compliant on-chain settlements.
Proposal Highlights: Real World Asset Exchange (RRE)
As part of its submission, Robinhood disclosed intentions to launch the Real World Asset Exchange (RRE), a trading platform that would combine off-chain trade matching with on-chain settlements. The company is pushing for federal-level regulatory uniformity to replace the fragmented state-level securities laws currently in place.
To meet global compliance standards, the platform will integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols through partnerships with firms like Jumio and Chainalysis.
Key Feature: Token-Asset Equivalence
Per an analysis by Franklin Elevator, the RRE platform would operate on a dual-chain architecture using Solana and Base, merging high-frequency off-chain trade execution with on-chain settlement. Robinhood anticipates the system will achieve:
- Sub-10 microsecond trade matching latency
- Throughput of up to 30,000 transactions per second
This efficiency could reduce U.S. capital markets’ settlement time from T+2 to T+0, potentially lowering annual trading costs by 30%.
Industry Momentum for Tokenization
Robinhood’s proposal aligns with growing institutional interest in RWA tokenization. Recent developments include:
- BlackRock filing to introduce a blockchain-based share class for its $150 billion Treasury Trust Fund (April 30).
- Libre announcing plans to tokenize $500 million in Telegram debt via its Telegram Bond Fund (April 30).
- MultiBank Group securing a $3 billion tokenization deal with UAE’s MAG Group and blockchain provider Mavryk (May 1).
Vlad Tenev, Robinhood CEO, stated: “RWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework.”
Eric Piscini, CEO of Hashgraph, noted: “The recent surge in tokenization isn’t arbitrary. Regulatory clarity, scalable technology, and institutional adoption are converging to drive this shift.”
Cointelegraph reached out to Robinhood for additional comments, but the company had not responded by the time of publication.
