Washington, D.C. — May 21, 2025—Online brokerage firm Robinhood has formally proposed a federal regulatory framework for tokenized real-world assets (RWAs) to the U.S. Securities and Exchange Commission (SEC), seeking to establish a standardized legal infrastructure for a market it estimates could reach $30 trillion, Forbes reported Friday.
In a 42-page filing, the company outlined a plan to treat digital tokens representing traditional assets—such as stocks, bonds, and real estate—as legally equivalent to their underlying financial instruments. The proposal aims to modernize asset issuance, trading, and settlement by integrating blockchain technology with existing securities laws.
Fragmented Current Landscape vs. Unified National Approach
Robinhood highlighted that despite rapid growth, RWA tokenization remains fragmented, confined to isolated pilot projects and regulatory sandboxes. The company is pushing for a national unified framework that would allow broker-dealers to issue and trade tokenized securities under a standardized compliance model, eliminating the need for parallel systems.
Key components of the proposal include:
Real World Asset Exchange (RRE): A new platform featuring off-chain trade matching and on-chain settlement.
Third-Party Compliance Tools: Integration of know-your-customer (KYC) and anti-money-laundering (AML) solutions from providers like Jumio and Chainalysis to meet global regulatory standards.
Proponents argue the framework would resolve legal ambiguities around asset ownership, reduce settlement times from days to minutes, and maintain investor protections under existing securities laws.
Bridging Traditional Finance and Blockchain
Known for democratizing retail stock and cryptocurrency trading, Robinhood is now positioning itself as a catalyst for bringing traditional finance onto blockchain networks. The filing stresses that tokenized assets should be recognized as direct representations of traditional financial products—not classified as derivatives or synthetic instruments.
Notably, the proposal does not advocate for new blockchain technology but focuses on legal interoperability to anchor tokenized finance in existing compliance standards. This approach aims to facilitate broader institutional adoption by providing a scalable pathway for on-chain financial markets within the U.S. legal system.
Regulatory and Institutional Hurdles Ahead
While the SEC has not yet responded to the proposal, Robinhood’s filing could set a precedent for how regulators define “asset-token equivalence.” The initiative’s success hinges on regulatory approval, attracting institutional participation, and proving large-scale utility.
As one of the most comprehensive proposals from a U.S.-regulated broker to formalize RWAs in mainstream finance, the plan reflects growing industry momentum to merge traditional assets with blockchain efficiency.
Forbes first reported the filing on May 20, noting that Robinhood’s vision could reshape how Wall Street approaches asset digitization if adopted.
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