Robinhood is developing a new blockchain infrastructure called Robinhood Chain, allowing users to trade tokenized representations of real-world stocks outside traditional market hours.
The project involves issuing tokens backed by actual securities, offering constant access, near-instant settlement, and the ability for users to hold the assets themselves or engage through decentralized apps.
If a significant portion of trading shifts to decentralized environments, traditional exchanges like the NYSE could lose trading volume and revenue, similar to the Coinbase Base chain model.
While the technology offers financial efficiency and programmable asset possibilities, regulatory uncertainty in the U.S. and potential risks like heightened price swings during off-hours trading remain major considerations.