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Robinhood has submitted a 42-page proposal to the U.S. Securities and Exchange Commission (SEC) requesting regulatory clarity on the tokenization of real-world assets (RWAs) and its potential application to on-chain stock trading.
According to a Forbes report, the proposal, filed with the SEC’s Crypto Task Force, outlines a framework for compliant issuance, custody, and trading of tokenized assets, aiming to modernize US capital markets.
Quantum Economics founder Mati Greenspan told Forbes,
“This proposal could mark the first time a U.S.-regulated broker has laid out a viable path for bringing trillions of dollars in assets onchain – without compromising regulatory integrity.
If the SEC embraces this, it’s a signal to the world that tokenization has a legitimate seat at the traditional finance table.”
Robinhood’s plan includes federally licensed tokenized asset standards, integrated Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, and a modified Form S-1 for tokenized securities.
The planned Real World Asset Exchange (RRE) would operate on the Solana (SOL) and Base blockchains.
Last month, Robinhood CEO Vlad Tenev said that the tokenization of traditional assets could secure the dominance of the US equities market.
“Tokenization of securities, which we’re very excited about, allows you to have ownership in companies…
Stablecoins are viewed rightly as an area that could increase demand among individuals overseas as governments become prone to diversifying away from holding treasuries.
So in the same way that stablecoin legislation can kind of push forward US dollar dominance, I think tokenized securities can really push forward US company dominance in the global market.”
At time of writing, the SEC has yet to issue a formal response.
