U.S.-based financial services company Robinhood has announced it is exploring a tokenized ETF product with $1.9 trillion asset manager T. Rowe Price, potentially bringing actively managed funds to its blockchain. According to the company's October 9 announcement, the proposed Stock Token would operate on Robinhood Chain, an Ethereum layer-2 blockchain network, marking a significant expansion of the company's tokenized securities business. The collaboration would represent the first Robinhood Stock Token tied to an actively managed ETF whose investments are actively selected by a fund manager, extending beyond the company's existing index-based tokenized securities. However, neither company has announced a launch date or confirmed that the proposed product will proceed, with any offering requiring legal reviews, board approval, finalized product terms and regulatory clearances before becoming available to investors.
The latest Bitcoin purchase represents a strategic move toward asset diversification rather than a speculative investment, according to Johann Kerbrat, Robinhood's Senior Vice President and General Manager of Crypto and International. Kerbrat stated, "We believe firmly in the future of crypto and view this as a strategic move for our overall asset diversification." This positions Robinhood as the 199th public company to embrace Bitcoin for corporate treasury diversification, joining a group led by Strategy that currently holds 1.279 million BTC worth approximately $105 billion at current market value. At Bitcoin's current price of $85,582, the purchase represents about 0.025% of Robinhood's market value, with Kerbrat noting it would do little to change the trajectory of a company valued near $100 billion.
Despite the Bitcoin treasury purchase, Robinhood's cryptocurrency business has experienced significant challenges, with cryptocurrency revenue falling 38% year-over-year to $100 million in the second quarter. However, the company's crypto bets are beginning to pay off through new revenue streams. Prediction markets launched in late 2024 and scaled through 2025-2026 have generated $260 million in revenue for Q1 and Q2 2026 alone, covering politics, sports, and earnings report outcomes. The company has also expanded into tokenized securities and perpetual futures across commodities, ETFs, and foreign exchanges, demonstrating diversified cryptocurrency revenue streams beyond traditional trading. In October, Robinhood reported that trading activity involving its Stock Tokens was approaching limits under a U.S. Securities and Exchange Commission exemption covering certain tokenized equity activities.
Robinhood Chain, the company's layer-2 network built on Arbitrum technology, has achieved remarkable growth since its public mainnet launch on July 1. The network now holds $1.047 billion in total value locked (TVL), according to DefiLlama, with growth crossing $1 billion roughly 80 days after launch. More significantly, chain revenue hit a monthly record of $32.3 million in September, demonstrating strong operational performance. The network supports tokens linked to companies including Nvidia, Apple and Alphabet, alongside selected investment funds, with tokenized stock trading on Robinhood Chain reaching $1 billion in cumulative volume through Uniswap in August according to Uniswap founder Hayden Adams. The proposed T. Rowe Price collaboration would introduce actively managed ETF exposure to this existing product structure, potentially expanding the network's offerings beyond index-based securities.
Despite positive crypto developments, Robinhood's stock performance has reflected mixed results, with Robinhood shares closing Tuesday at $109.5, down from the previous $112. However, Wall Street analysts maintain a bullish outlook with a consensus target of $133, with Barclays projecting $132 and Bank of America targeting $156, implying 22.5% and 38% upside potential respectively. The company's proposed collaboration with T. Rowe Price remains subject to significant regulatory approvals, with Robinhood cautioning that "no assurance can be given that any such approvals will be obtained." The legal structure of blockchain-based equities has remained an active issue among financial technology companies, with Robinhood's existing Stock Tokens not available to American investors under current product structure, restricted to eligible customers outside the United States, Canada, the United Kingdom and Switzerland. In July, Robinhood confirmed plans to expand its blockchain services internationally, introducing new trading and lending products alongside its Stock Token business.
