Robinhood Soars on Tokenized Stocks and Bitstamp Deal

Trading platform gains momentum with blockchain-based equity offerings and global crypto expansion through Bitstamp acquisition.

Robinhood is making aggressive moves into the future of finance, with its stock price soaring nearly 26% over the past month. The surge comes amid two major developments: the launch of tokenized U.S. stock trading in Europe and the completed acquisition of the veteran crypto exchange Bitstamp. While these strategic steps position Robinhood at the forefront of blockchain-powered finance, they also invite scrutiny from European regulators over the firm’s latest product offerings.

Tokenized Stock Trading Hits the EU

In a bold bid to redefine how retail investors access financial markets, Robinhood has launched a tokenized equity trading platform in the European Union. Through blockchain-based derivatives built on Ethereum’s Arbitrum network, users can now gain exposure to more than 200 U.S. stocks and ETFs, including prominent names like Apple and Tesla.

The platform also offers synthetic price exposure to shares of major private companies such as OpenAI and SpaceX—firms whose shares are not publicly traded. These tokens track the market valuations of the underlying companies but do not confer any equity rights like dividends, voting, or ownership.

Robinhood clarified that the tokens are exclusively available to EU clients and function as price-tracking derivatives, not actual shares. However, the company’s effort to provide exposure to hard-to-access equities has triggered regulatory backlash.

EU Regulators Probe Legality of Stock Tokens

The Bank of Lithuania announced it is actively investigating Robinhood’s new tokenized offerings, particularly the derivative tokens linked to OpenAI and SpaceX. The probe centers on whether adequate investor disclosures were provided and whether the product aligns with local financial laws.

The backlash intensified after OpenAI publicly distanced itself from the tokens, stating that it had neither approved nor collaborated with Robinhood on the offering. In response, Elon Musk weighed in on X (formerly Twitter), calling the tokens “fake” in a reply referencing OpenAI’s equity—but notably made no comment on the SpaceX tokens.

Legal experts warn that if such a product were offered in the U.S., it would likely attract immediate scrutiny from the Securities and Exchange Commission (SEC). Because the tokens provide no ownership or governance rights, critics argue they are misleading and potentially risky for uninformed retail investors. Liquidity, transparency, and investor protections remain key concerns.

Despite the controversy, Robinhood’s stock jumped 13% immediately after the token launch, though the rally cooled off in early July as the legal uncertainty mounted.

Robinhood Completes Bitstamp Acquisition

While its EU token product garners attention—and criticism—Robinhood is making a more quietly transformative move on the crypto front. The company has finalized its acquisition of Bitstamp, one of the world’s oldest cryptocurrency exchanges, founded in 2011.

Announced on June 2, the deal gives Robinhood access to over 50 licenses and regulatory registrations across the U.S., EU, UK, and Asia. Bitstamp’s robust compliance history and global presence immediately bolster Robinhood’s international credibility and operational scope.

The acquisition also marks Robinhood’s formal entry into the institutional crypto market. Bitstamp has long served as a trusted venue for hedge funds, fintechs, and institutional clients due to its deep liquidity, high-performance API access, and products like crypto-as-a-service, institutional lending, and staking solutions.

“Robinhood is entering the space with an active and highly trusted business”, stated in the announcement, highlighting Bitstamp’s established relationships and operational resilience. The move significantly broadens Robinhood’s crypto product offerings and creates an enterprise-grade foundation for future growth.

Key Benefits of the Bitstamp Acquisition:

• Immediate access to 50+ regulatory licenses across jurisdictions
• A 14-year track record of secure and compliant crypto trading
• Established institutional client base and B2B crypto solutions
• Enhanced crypto product portfolio, including lending and staking

Impressive Financials Amid High Valuation

Robinhood’s aggressive expansion strategy is buoyed by strong financial performance. In the past 12 months, the firm reported $3.3 billion in revenue, up nearly 60% year-over-year. Quarterly revenue also rose 50% compared to the same period last year.

The platform is not just growing—it’s highly profitable. Robinhood boasts a net income margin of 48.8% and operating income of $1.3 billion, translating to a 39% operating margin, well above the industry average.

Still, some analysts express caution about Robinhood’s lofty valuation. The stock currently trades around $95, with a price-to-sales ratio of 24.1, compared to 3.1 for the S&P 500, and a P/E ratio of 49.5, far exceeding the S&P benchmark of 26.9.

While the stock may appear overvalued by traditional metrics, its strong fundamentals and high-margin growth in emerging sectors like tokenized finance and institutional crypto make it attractive to forward-looking investors.

Looking Ahead: Opportunity and Risk

Robinhood’s dual bet on tokenized equity trading and institutional crypto services reflects a broader shift in the financial sector toward blockchain-enabled infrastructure. If successful, the strategy could redefine access and liquidity in both public and private markets, particularly for European retail investors and global institutions.

However, the firm’s approach to regulation—especially around synthetic equity offerings—will be closely watched. The ongoing scrutiny in the EU could signal future regulatory hurdles, especially as Robinhood tries to scale these products further.

In a rapidly evolving financial landscape, Robinhood is positioning itself as a first mover in tokenized finance, but it must carefully balance innovation with compliance to sustain investor trust and long-term growth.