news 
Robinhood (HOOD) Stock: Trading Stocks 24/7 Could Become Reality
Robinhood Markets, Inc., a prominent brokerage firm, has unveiled a three-phase plan to convert tokenized securities into blockchain assets that can seamlessly operate across decentralized finance platforms. This innovative move could potentially revolutionize the way we trade stocks by enabling continuous trading for 24 hours a day and seven days a week.
The first phase of this ambitious project is already underway in Europe, where nearly 800 tokenized securities are currently available through the Robinhood app. While these digital versions of publicly traded securities reside on the blockchain, they are not yet transferable outside of the Robinhood platform. Users can only buy and sell them within the app.
However, in a recent presentation by A.J. Warner from Offchain Labs, the roadmap for this project was laid out, providing some insight into what to expect next. In phase 2, Robinhood will focus on infrastructure upgrades, leveraging its acquisition of Bitstamp exchange for $200 million earlier this year. This move will enable around-the-clock trading for tokenized stocks.
The technical challenge lies in ensuring compatibility between different programming languages used in financial systems and Ethereum smart contracts. Here’s where Arbitrum Stylus comes into play, allowing developers to write smart contracts in traditional programming languages while maintaining compatibility with the Ethereum blockchain.
Phase 3 is expected to be a game-changer, as it would allow users to withdraw their tokenized stock tokens from Robinhood and utilize them across decentralized finance (DeFi) applications. This could enable users to leverage their stock tokens as collateral for lending protocols like Aave or use them in yield farming strategies, among other possibilities.
The implications of this development are vast and far-reaching, potentially opening doors for novel investment opportunities, increased accessibility to financial markets, and greater transparency across the entire financial ecosystem.
Source: blockonomi.com
