Cryptocurrency revenues for trading platform Robinhood rose 98% in the second quarter to $160 million.
Robinhood saw its total net profit rise 45% year-on-year to $989 million, rising to $989 million, while net profit rose to $386 million.
Despite Wall Street’s expectations, the company traced slightly in out-of-hours transactions.
Also, crypto volume rose 32% in the quarter to $28 billion as crypto market capitalization rose 21.7% to $3.36 trillion.
Robinhood wants to tokenize alternative assets that are difficult to reach
“We believe tokenization is the biggest innovation the industry has seen in the last decade,” the CEO said that Robinhood deployed the Robinhood chain, a Layer 2 blockchain, focusing on tokenization for stock trading in Europe at the end of last month.
Tenev said Robinhood’s main focus in the US market is to tokenize alternative assets “previously inaccessible.”
“Private markets and related real-world assets are opportunities that never exist,” and “We will work with regulators to make that possible.”
TENEV looked at everything from private stocks and venture capital funds to real estate that is usually outside the limits for retail investors due to regulatory and liquidity barriers.
It will be almost two months after Robinhood’s $200 million acquisition of Crypto Exchange Bitstamp. This is set to play a pivotal role in the company’s tokenization strategy.
Robinhood’s tokenization offering raised legal concerns
TENEV said it saw strong interest from developers who want to tokenize Robinhood’s corporate assets since it announced its tokenization strategy at Cannes, France late last month.
“Since our event, we’ve been jumping to tokenize our company’s stocks or tokenize the real world asset revolution and making lots of calls from developers who are our partners.”
Robinhood has already issued private equity tokens in Europe similar to Openai and SpaceX stocks.
However, while the provision of tokenization has recently sparked a legal investigation in Lithuania, Openai warned that Robinhood’s Openai tokens do not resemble the company’s actual fairness.
CEOs are more equipped for tokenization
When asked how Robinhood’s tokenization platform outweighs public blockchain, Tenev pointed to its 25 million US users and $1 trillion in assets already in custody.
“It’s going to be very difficult for someone else to replicate,” Teneva said.
“There are many chains that want to build the perfect chain for Degen Traders, but I don’t think anyone else is working directly on the real assets and the opportunities for unique traits they have.”
Related: Ethereum tokenize 100 most popular US stocks
Although TENEV’s comments were directed towards Layer 2, Ethereum continues to dominate the crypto tokenization market, securing real-world assets worth $7 billion, data from RWA.XYZ shows.
The Ethereum Layer 2 Zksync Era ranked second at $2.4 billion, accounting for nearly 19% market share.
magazine: Will Robinhood’s tokenized stocks really take over the world? Pros and Cons
