Robinhood Crypto is exploring a collaboration with asset manager T. Rowe Price to launch a tokenized product linked to an actively managed exchange-traded fund on its Robinhood Chain. This would be the first 'Stock Token' of its kind, offering exposure to actively managed ETFs, distinct from Robinhood's existing tokenized debt securities tied to single stocks and passive ETFs.
The proposed product could expand the range of tokenized assets available on blockchain networks, bridging traditional finance with digital assets and potentially attracting institutional interest to Robinhood's crypto ecosystem.
Robinhood Crypto is exploring a potential collaboration with asset manager T. Rowe Price to introduce a new type of financial product on its Robinhood Chain. The initiative aims to bring tokenized exposure to actively managed exchange-traded funds (ETFs).
According to an X post on October 9, Robinhood Crypto stated that a successful outcome would represent the first 'Stock Token' of its kind, signaling readiness for institutional involvement. The proposed collaboration is contingent upon various requirements, including legal due diligence, issuer board approval, final terms, and regulatory clearances.
Robinhood currently offers more than 190 Stock Tokens on its Ethereum layer-2 network, Robinhood Chain. These tokens provide economic exposure to underlying U.S. stocks and ETFs, functioning as tokenized debt securities. Holders do not gain voting rights or direct legal ownership of the underlying assets. These tokens trade 24/7, feature on-chain price feeds, and reinvest dividends through a multiplier mechanism instead of cash distributions. The existing tokens are backed one-to-one by securities held by a custodian.
The key distinction of the proposed product is its link to an actively managed ETF from T. Rowe Price, as opposed to single stocks or passive, index-tracking funds. Actively managed ETFs involve portfolio adjustments based on the asset manager's decisions.
In a separate development, Robinhood recently acquired $25 million worth of Bitcoin for its corporate balance sheet, a move confirmed by Johann Kerbrat, SVP and GM of International & Crypto at Robinhood.
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