Robinhood has submitted an in depth proposal to the US Securities and Change Fee (SEC), calling for the creation of a federal framework to manage tokenized real-world property (RWAs), which symbolize a possible $30 trillion market, Forbes reported on Could 20.
The 42-page submitting outlines a authorized infrastructure that might permit digital tokens representing conventional monetary devices, equivalent to equities, bonds, and actual property, to be handled as equal to the underlying property.
The proposal goals to modernize how property are issued, traded, and settled within the US by integrating blockchain-based mechanisms inside current securities regulation.
Unified framework
Robinhood’s proposal emphasizes that present approaches to RWA tokenization have remained largely fragmented, working in remoted pilots and regulatory sandboxes regardless of staggering development.
Against this, the corporate is advocating for a unified nationwide framework that might allow broker-dealers to situation and commerce tokenized securities beneath a standardized compliance mannequin, eradicating the necessity for parallel techniques.
In response to the report, the initiative consists of plans for a brand new platform referred to as the Actual World Asset Change (RRE), which might function off-chain commerce matching paired with on-chain settlement.
The platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) instruments supplied by third-party suppliers equivalent to Jumio and Chainalysis to make sure compliance with world regulatory requirements.
If adopted, the framework may remove authorized ambiguities surrounding asset possession and cut back settlement instances, whereas preserving investor protections beneath current securities regulation.
Retail entry to market infrastructure
Robinhood, extensively recognized for its position in retail inventory and crypto buying and selling, is now positioning itself as a contributor to regulatory infrastructure to convey conventional finance on-chain.
Its submitting argues that tokenized property shouldn’t be categorized as derivatives or artificial devices however acknowledged as direct representations of conventional monetary merchandise.
The report famous that the corporate is just not proposing new blockchain expertise, however quite authorized interoperability to anchor tokenized finance to current compliance requirements.
Robinhood’s method seeks to open the door for broader institutional adoption, providing a scalable path to onchain monetary markets inside the US authorized system.
Whereas the SEC has not but responded to the proposal, Robinhood’s submitting might function a check case for a way regulators view asset-token equivalence. The success of the initiative will doubtless rely not solely on regulatory reception but in addition on the power to draw institutional participation and exhibit utility at scale.
As of now, Robinhood’s submission represents one of the crucial structured efforts by a US-regulated dealer to formalize the position of tokenized RWAs inside mainstream finance.
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