Robinhood Shares Gain 3% Premarket After Jumping 12.8% in Prior Session on Tokenized Stock Rollout for EU Users

Robinhood's shares continue to gain 3% in premarket trading after jumping 12.8% to hit a record high on Monday. Robinhood said on Monday it has launched tokens that will allow its customers in the European Union to trade more than 200 U.S. stocks and exchange-traded funds, including Nvidia, Apple and Microsoft.

The commission-free tokens can be traded around-the-clock, five days a week. Robinhood also plans to offer tokens linked to stocks of privately-held companies, starting with Sam Altman's OpenAI and Elon Musk's SpaceX, the trading platform's top executives said at its keynote event in France.

The tokens will be issued through a partnership with blockchain firm Arbitrum. With the move, the company stands to benefit from rising global interest, opens new tab in the U.S. stock market — home to some of the world's most influential tech giants and leading beneficiaries of the AI boom.

Tokenized equities mix traditional finance with crypto-like trading, and have been gaining traction among international investors due to better access, flexible trading hours and lower costs.

Experts believe such tokens could dramatically alter the securities investing landscape, though they currently lack regulatory clarity in the United States.

Menlo Park, California-based Robinhood plans to eventually develop its own blockchain that will expand trading hours for tokens to 24/7 from 24/5 currently.

The company will also expand the number of available stock tokens to "thousands" by the end of the year, Tenev said at the event.

"Tokenization is going to open the door to a massive trading revolution," he said.

Last month, crypto exchange Kraken also launched equities-linked tokens for non-U.S. investors.