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Ethereum and Robinhood Join Forces: Shares Soar as Tokenization and Staking Introduced

Robinhood shares soared to an all-time high following the announcement of tokenized stock trading and the launch of its blockchain network.

The stock price climbed 11.25% to $92.37, reflecting a staggering 148% increase since the beginning of the year.

In a significant move, Robinhood has enabled European users to trade U.S.-listed stocks and ETFs as tokens on the Ethereum layer-2 network, Arbitrum.

Additionally, customers can now stake Ethereum and Solana, following recent regulatory clarity on staking activities.

Analysts see the introduction of tokenized stocks as a potential boost for Robinhood's revenue, with expectations of higher margin trading fees.

Ed Engel from Compass Point raised the stock’s price target to $96, maintaining a "Buy" rating as the firm expands its offerings.

The European version of Robinhood's app is now fully integrated with blockchain technology, showcasing features like crypto trading and perpetual futures.

The company's crypto sector has seen remarkable growth, with a reported $252 million in revenue for the second quarter, doubling from a year earlier.

Robinhood's innovations mirror trends across the U.S. crypto exchange landscape, indicating its intent to remain competitive.

During a recent keynote, CEO Vlad Tenev demonstrated the capabilities of Arbitrum with a successful transaction involving a digital representation of OpenAI stock.