According to Galaxy Digital, a plan to token stock on its new ethrium-component blockchain can reduce your main revenue from traditional exchanges such as NYSE to transfer trading volumes to trading volumes from trading fees and market data.
At the EthCC conference this week, Robinhood CEO Vlad Tenv gave a detailed plan to an atherium -compatible layer -2 on the Arbitrum Orbit “for” Robinhood Chain, “. Blockchain will allow users to trade the tokens of shares directly from tokens, which forward asset trading outside the traditional exchange hours.
Tenev explained that a new token engine working on Robinhood chain would provide users with the token derivatives of their assets, allowing them to self-construct these tokens or interact with a decentralized application.
Robinhood will offer about 24/7 trading plans to Robinhood users by colliding “wraps” associated with actual shares protected by an American broker-dealer, near about 24/5 trading and 24/5 trading. The initiative takes advantage of the recent acquisition of Robinhood’s Crypto Exchange Bitstamp.
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Robinhood brings a believer to tokenification property
In a Friday report, Galaxy Digital Said The tokening step of that robinhood removes assets from traditional market channels and brings them onchain, directly focused liquidity and activity that gives major tradefi exchanges such as the edge of NYSE.
Galaxy Digital wrote, “This directly challenges the deep concentration of liquidity and activity that gives major tradfi exchanges (eg, NYSE) their competitive advantage.”
The architecture of the platform reflects the rollup model such as the base of the coinbase, which provides complete control of its sequencer and the ability to capture all transactions fees. Galaxy estimates that the daily sequential fee for the coinbase produces more than $ 150,000.
The report stated that while conducting the sequencer for the token chain, controlling the property of the token, the purpose of Robinhood is to mudge every layer of the trading stack – “From offcain trading to onchain utility,” the report said.
In particular, the appeal of the token property is spread beyond 24/7 trading. Programmability may allow uses to use tokens or automatic use of tokens as collateral in DEFI protocols, which may not match traditional equity.
As Galaxy mentions, if the assignment can not match the utility of the property of the exchange token, they risk becoming “mentors of low functional versions of the same property”, pushing more traders to blockchain-based platforms.
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Instability remains risk
However, a 24-hour trading model can offer volatility risk for retail investors, which can wake up for sharp value moves outside regular hours.
In addition, regulator uncertainty remains a challenge. While Robinhood’s tokens are available only to the European Union users, the US Securities and Exchange Commission (SEC) has not publicly commented on the model.
Securities Industry and Financial Markets Association (SIFMA) is already Firmly request SEC Regulation to reject the trade of token equity outside the NMS framework.
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