Robinhood has submitted an in depth proposal to the US Securities and Alternate Fee (SEC), calling for the creation of a federal framework to control tokenized real-world property (RWAs), which symbolize a possible $30 trillion market, Forbes reported on Might 20.
The 42-page submitting outlines a authorized infrastructure that might permit digital tokens representing conventional monetary devices, comparable 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 present 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 progress.
In contrast, the corporate is advocating for a unified nationwide framework that might allow broker-dealers to problem and commerce tokenized securities below a standardized compliance mannequin, eradicating the necessity for parallel programs.
In accordance with the report, the initiative consists of plans for a brand new platform referred to as the Actual World Asset Alternate (RRE), which might characteristic 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 comparable to Jumio and Chainalysis to make sure compliance with international regulatory requirements.
If adopted, the framework might remove authorized ambiguities surrounding asset possession and scale back settlement occasions, whereas preserving investor protections below present securities regulation.
Retail entry to market infrastructure
Robinhood, broadly identified for its function in retail inventory and crypto buying and selling, is now positioning itself as a contributor to regulatory infrastructure to carry 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 just isn’t proposing new blockchain know-how, however reasonably authorized interoperability to anchor tokenized finance to present compliance requirements.
Robinhood’s method seeks to open the door for broader institutional adoption, providing a scalable path to onchain monetary markets throughout the US authorized system.
Whereas the SEC has not but responded to the proposal, Robinhood’s submitting could function a take a look at case for a way regulators view asset-token equivalence. The success of the initiative will seemingly rely not solely on regulatory reception but in addition on the power to draw institutional participation and reveal utility at scale.
As of now, Robinhood’s submission represents some of the structured efforts by a US-regulated dealer to formalize the function of tokenized RWAs inside mainstream finance.