As per the latest reports, Robinhood is working on a proposal that would bring a national regulatory system for tokenized real-world assets. Today, the leading brokerage firm offered the Securities and Exchange Commission (SEC) a 42-page detailed document proposing a set of regulations that could bring more order to asset tokenization.
Robinhood has an unique idea of a token representing the U.S. Treasury bond that would be considered the genuine credit asset by law. With this, organizations dealing with securities could adopt tokenized RWAs within the rules already set, making all processes much more efficient.
Robinhood Proposes Major Upgrade
Following the proposal, Robinhood introduced RRE, a new platform for trading asset-backed securities. The aim is to use an offchain agent for trade matching and settle on the blockchain, balancing fast trade processes with clear visibility.
The use of RRE would involve a dual-chain model that draws on both the Solana and Base blockchains with latency lower than 10 microseconds and can handle up to 30,000 transactions every second. This advancement in technology could speed up the United States capital markets settlement cycle from taking two days to as quick as zero with a cost reduction by 30%.
Further, the RRE would comply with worldwide regulations by working with Jumio and Chainalysis for KYC and AML purposes. “RWA tokenization represents a new paradigm for institutional asset allocation. Robinhood is committed to leading this trend under a compliant framework,” said Robinhood CEO Vlad Tenev.
With BlackRock proposing this only a week earlier, Robinhood is proposing this during a moment when interest in tokenization from institutions is increasing. Moreover, Libre plans to place $500 million of Telegram-linked debt on the blockchain and MultiBank joined with UAE partners MAG and Mavryk to tokenize a $3 billion debt contract.
