Robinhood Crypto Explores New Product with $1.9T AUM T. Rowe Price
Highlights
- Robinhood Crypto and T. Rowe Price Digital Assets explore a potential partnership.
- The firms plans to launch Stock Token tied to actively managed ETFs to Robinhood Chain.
- Robinhood offers over 190 Stock Tokens linked to stocks and ETFs.
Robinhood Crypto said it is exploring a potential collaboration with $1.9T AUM asset manager T Rowe Price to bring tokenized exposure to actively managed exchange-traded funds to Robinhood Chain. The firm stated that a successful outcome would be a first Stock Token of its kind.
In an X post on October 9, Robinhood Crypto revealed plans to launch a Stock Token linked to an actively managed ETF on Robinhood Chain. It is under discussion with T Rowe Price Digital Assets to bring an actively managed ETF on its chain.
“It would be the first Stock Token of its kind. Institutions are here, and our rails are ready,” Robinhood Crypto wrote.
The collaborations and a Stock Token tied to an actively managed ETF are subject to requirements including legal due diligence, issuer board approval, final terms, and regulatory clearances in relevant jurisdictions.
Robinhood already offers over 190 Stock Tokens linked to stocks and ETFs including NVIDIA, Google, Apple, and Invesco QQQ on its Ethereum layer-2 network Robinhood Chain. These tokens function as tokenized debt securities, providing economic exposure to underlying U.S. stocks and ETFs. Holders do not receive voting rights or direct legal ownership of the underlying securities.
The tokens trade 24/7 through supported wallets and venues, carry on-chain price feeds, and reinvest dividends through a multiplier rather than cash distributions. The stock tokens are backed one-for-one by securities held with a custodian.
The latest proposed product by Robinhood differs because it would track an actively managed ETF by T Rowe Price rather than a single stock or a passive, index-tracking fund. In an actively managed ETF, the portfolio composition, weightings, and trades change according to the asset manager’s decisions.
As CoinGape recently reported, Robinhood bought Bitcoin for the first time for its corporate balance sheet. Johann Kerbrat, SVP and GM of International & Crypto at Robinhood, confirmed the trading firm bought $25 million in Bitcoin.
To understand how these hybrid financial instruments operate and where they are available, investors can check our guide on the best exchanges for tokenized stocks to compare platform features and regulatory compliance.
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