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Robinhood files RWA tokenization rules with SEC

Wednesday 21 May 2025 14:48 CET | News

Robinhood has formally submitted a regulatory proposal to the US SEC seeking the creation of a federal framework for the tokenisation of real-world assets.

 

The proposal, filed in April 2025, outlines operational and compliance mechanisms intended to govern the issuance and trading of tokenized assets in the United States. 

The initiative reflects the company’s efforts to develop a new RWA platform, known as Robinhood RWA Exchange (RRE), designed to facilitate token-based trading of traditional assets. The submission comes amid growing institutional interest in blockchain-based financial infrastructure.

 

Robinhood has formally submitted a regulatory proposal to the US SEC seeking the creation of a federal framework for the tokenisation of real-world assets.

 

Platform design and technical infrastructure

According to Robinhood’s 42-page filing, the RRE platform will be built on a hybrid blockchain architecture combining Solana and Base networks. It will use off-chain order matching paired with on-chain settlement, with the aim of reducing transaction latency and improving scalability. Performance targets include a sub-10 microsecond matching speed and a throughput capacity of up to 30,000 transactions per second. 

The system is designed to compress the conventional T+2 trade settlement cycle seen in US markets to near-instant (T+0) finality. Robinhood officials claim this could result in a 30% reduction in annual trading-related costs. The company expects the platform to reach USD 10 billion in total value locked and attract five million users within three years of launch.

Primary regulatory proposals

The regulatory framework proposed by Robinhood focuses on several core areas: 

  • Introduction of a federal licensing standard for issuing tokenised assets. 
  • Implementation of decentralised, on-chain asset tracking mechanisms with real-time auditability. 
  • Integration of global know-your-customer (KYC) and anti-money laundering (AML) protocols aligned with the Financial Action Task Force (FATF) Travel Rule. The proposed compliance system would incorporate technologies from identity verification and blockchain analytics providers. 

The company has positioned these measures as foundational components of the RRE platform’s regulatory and operational model. 

According to franklinelevator.com, tokenization of real-world assets has gained traction globally since 2023. Industry forecasts suggest the market could expand to USD 30 trillion by 2030, driven by institutional demand for greater efficiency and transparency in asset allocation.


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Keywords: cryptocurrency, tokenization, digital assets, regulation
Categories: DeFi & Crypto & Web3
Companies: Robinhood, SEC
Countries: United States
This article is part of category

DeFi & Crypto & Web3

Robinhood

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SEC

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