- Robinhood’s tokenisation plan puts pressure on Wall Street exchanges.
- Galaxy warns exchanges risk becoming mere custodians if they fail to adapt.
- Fintechs and crypto firms are racing to control tokenised asset markets.
Robinhood’s latest tokenisation strategy could sideline legacy exchanges like the New York Stock Exchange by pulling assets onto blockchain rails and reducing traditional players to passive custodians, analysts at Galaxy Digital warned in a recent newsletter.
The investment firm sees Robinhood’s plan to launch its own blockchain, dubbed Robinhood Chain, as a potential tipping point for stock exchanges already facing mounting competition from crypto-native platforms and fintech challengers.
“The real utility of tokenised assets — 24/7 trading, programmability, and onchain interoperability — makes them more versatile than their traditional counterparts,” Galaxy wrote.
“If incumbent exchanges can’t adapt, they risk being left behind as mere custodians of a less functional version of the same assets.”
At the same time, Robinhood’s tokenisation push drops it into a two-sided race, where legacy exchanges scramble to stay relevant and fintech and crypto rivals look to outmanoeuvre Robinhood.
Rival exchange Kraken has already launched its own blockchain, Kraken Ink, and recently unveiled a tokenised stock trading service.
Coinbase’s Base blockchain has become one of the most active rollup networks in crypto, boasting nearly $3.5 billion in total value locked.
Meanwhile, Wall Street incumbents are racing to catch up. JPMorgan, Bank of America, Citigroup, and Wells Fargo have rolled out stablecoin and tokenisation initiatives.
BlackRock CEO Larry Fink has repeatedly called tokenisation the next evolution in financial markets.
For now, Galaxy argues the biggest competitive edge lies with firms that can control both the underlying assets and the blockchain infrastructure they trade on.
Crypto market movers
- Bitcoin has lost 1% of its value in the past 24 hours and is trading at $107,950.
- Ethereum is down 1.6% in the same period to $2,515.
What we’re reading
- How Franklin Templeton’s $800m tokenised fund is spurring its blockchain strategy — DL News
- Why we’re bullish on the next 3 months — Milk Road
- Tornado Cash’s Roman Storm Leaves Testimony Plans Open Ahead of Trial — Unchained
- Trump-backed World Liberty Financial proposes making its token tradable but insiders will have to wait to cash out — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com
