Robinhood Proposes SEC-Approved Framework to Regulate Tokenized Real-World Assets

• Robinhood submitted a 42-page proposal to the SEC for regulating tokenized real-world assets (RWAs).
• Built-in KYC/AML compliance will leverage tools from Jumio and Chainalysis.

Robinhood has filed a proposal with the U.S. Securities and Exchange Commission (SEC), seeking a unified federal framework for trading tokenized real-world assets (RWAs). The proposal marks a pivotal moment in bridging traditional finance with blockchain innovation.

The core of Robinhood’s plan is legal clarity. Instead of pushing new technology first, the company prioritises regulatory certainty. Robinhood proposes that tokenised RWAs, such as stocks, Treasuries, and real estate, be treated as legally equivalent to their traditional counterparts.

RRE: Robinhood’s 24/7 Token Exchange

Central to the proposal is the launch of the Real World Asset Exchange (RRE). This platform would offer 24/7 trading through off-chain trade matching and on-chain settlement.

Built on a dual-chain architecture using Solana and Base, RRE aims for sub-10 microsecond latency and throughput of up to 30,000 transactions per second. As a result, it could reduce trading costs by 30% and compress settlement cycles.

To ensure compliance, Robinhood plans to integrate KYC and AML tools from Jumio and Chainalysis. These features will help meet both U.S. and international regulatory standards, strengthening transparency and investor protection. 

Robinhood CEO Vlad Tenev called RWA tokenization “a new paradigm for institutional asset allocation.” He emphasized that the firm’s approach could modernize U.S. capital markets, unlocking a projected $30 trillion opportunity.

The timing is significant. Other major players are also moving into tokenization. BlackRock recently filed to tokenize its $150 billion Treasury Trust Fund, while Libre and MultiBank Group launched multibillion-dollar blockchain-backed asset offerings.

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