2 days ago
Robinhood has submitted a elaborate connection to the US Securities and Exchange Commission (SEC), calling for the instauration of a national model to modulate tokenized real-world assets (RWAs), which correspond a potential $30 trillion market, Forbes reported connected May 20.
The 42-page filing outlines a ineligible infrastructure that would let integer tokens representing accepted fiscal instruments, specified arsenic equities, bonds, and existent estate, to beryllium treated arsenic equivalent to the underlying assets.
The connection aims to modernize however assets are issued, traded, and settled successful the US by integrating blockchain-based mechanisms wrong existing securities law.
Unified framework
Robinhood’s connection emphasizes that existent approaches to RWA tokenization person remained mostly fragmented, operating successful isolated pilots and regulatory sandboxes despite staggering growth.
By contrast, the institution is advocating for a unified nationalist model that would alteration broker-dealers to contented and commercialized tokenized securities nether a standardized compliance model, removing the request for parallel systems.
According to the report, the inaugural includes plans for a caller level called the Real World Asset Exchange (RRE), which would diagnostic off-chain commercialized matching paired with on-chain settlement.
The level would incorporated know-your-customer (KYC) and anti-money-laundering (AML) tools provided by third-party providers specified arsenic Jumio and Chainalysis to guarantee compliance with planetary regulatory standards.
If adopted, the model could destruct ineligible ambiguities surrounding plus ownership and trim colony times, portion preserving capitalist protections nether existing securities law.
Retail entree to marketplace infrastructure
Robinhood, wide known for its relation successful retail banal and crypto trading, is present positioning itself arsenic a contributor to regulatory infrastructure to bring accepted concern on-chain.
Its filing argues that tokenized assets should not beryllium classified arsenic derivatives oregon synthetic instruments but recognized arsenic nonstop representations of accepted fiscal products.
The study noted that the institution is not proposing caller blockchain technology, but alternatively ineligible interoperability to anchor tokenized concern to existing compliance standards.
Robinhood’s attack seeks to unfastened the doorway for broader organization adoption, offering a scalable way to onchain fiscal markets wrong the US ineligible system.
While the SEC has not yet responded to the proposal, Robinhood’s filing whitethorn service arsenic a trial lawsuit for however regulators presumption asset-token equivalence. The occurrence of the inaugural volition apt beryllium not lone connected regulatory reception but besides connected the quality to pull organization information and show inferior astatine scale.
As of now, Robinhood’s submission represents 1 of the astir structured efforts by a US-regulated broker to formalize the relation of tokenized RWAs wrong mainstream finance.
The station Robinhood calls connected SEC to found unified regulatory model for tokenized RWAs appeared archetypal connected CryptoSlate.
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