Brokerage firms enter the crypto market Robinhood deploys ETH second-layer network

Robinhoodis a well-known Internet brokerage firm in the United States, and has a high reputation among young users in the United States. In addition to traditional brokerage business, Robinhood has also been actively extending its business to the encryption ecosystem in recent years.

Now Robinhood has finally made substantial moves. On July 1, Robin Hood announced on its official Twitter that it will cooperate with Arbitrum to construct a second-layer extension based on Ethereum based on Arbitrum's Orbit technology stack.

The most important purpose of Robinhood's move is to build its own platform, tokenize stocks on this platform, and conduct related token transactions.

It is not uncommon for traditional financial institutions to enter the Ethereum ecosystem. Previously, BlackRock invested in RWAthe purchase of Ethereum, JPBaseissuing encrypted assets, etc. are all their actions to enter the game.

However, there is still a big gap between these actions and Robinhood's direct construction of its own second-layer expansion.

The actions of these large financial institutions seem to be testing the waters, while Robinhood's actions are to join the battle with all its strength. Now it is not only an Internet brokerage but also a crypto company soon.

Interestingly, just recentlyCoinbasehas submitted an application to the US Securities and Exchange Commission for stock tokenization transactions. I believe that with the current attitude and efficiency of the SEC, the approval result should come out soon and the result will be relatively optimistic. I wonder if Robinhood chose to end at this time just because it saw the right time? It is conceivable that once the approval of the SEC has an optimistic result, Coinbase and Robinhood will become the pioneers in stock tokenization transactions among US listed companies. This imagination space will be magnified and hyped by the participants.

In fact, Robinhood's stock price has begun to move recently.

In addition to raising the imagination space and pushing up the stock price, the more important significance of Robinhood's move is that it will definitely play a strong demonstration role in the US securities industry. First, it will provide a reference for the industry in technology selection, and second, it will set an example for the industry in business expansion models.

I believe that more securities companies will build their own platforms through Ethereum's second-layer expansion, and will quickly enter the stock tokenization.

I have never been very interested in stock tokenization, for reasons I have shared many times in previous articles. What really interests me is another piece of information that does not seem to attract much attention:

Just as Robinhood announced the construction of L2, someone discovered that Arbitrumhad a transfer transaction, and the object of the transaction was

In my opinion, this is simply a repackaged version of ICO.

And what ICOmeans, I believe that the participants who have experienced that crazy history will still remember it clearly.

According to public information, OpenAIcompleted its latest round of financing in March of this year, raising US$40 billion and valued at US$300 billion.

Since

The reason why ICOwas able to set off a frenzy in the crypto ecosystem was, on the one hand, that it promoted project financing, and on the other hand, that it gave retail investors the opportunity to participate in the early investment of the project, which could bring amazing returns to retail investors.

NowOpenAIunlisted interests have been tokenized and traded on the chain, which has set a precedent for equity transactions of such companies.

Looking at the entire technology industry, there are too many good companies like OpenAIthat are not listed and are still raising funds. If their unlisted shares can be traded in this way in the future and retail investors can participate, then there will be a lot of room for imagination.

So I guess that after companies like Robinhood and Coinbasehave realized stock tokenized transactions, the next step they will explore is equity tokenized transactions. And if equity tokenized transactions can be opened to retail investors, the potential returns that this transaction can bring to retail investors will be quite amazing.

Of course, the obstacle to opening up equity tokenized transactions to retail investors is not technology but regulation.

Fortunately, the regulatory attitude of this session of SECis relatively relaxed. I wonder if this will bring benefits to retail investors and the entire crypto ecosystem?

In my previous article, when I shared the prosperity of the last round of Ethereum ecosystem, I specifically mentioned that NFTis one of the few applications that can bring non-circle users to the crypto ecosystem on a large scale.

And now Robin Hood's actions have shown some signs of this, but we still have to wait and see what the final effect will be.