The use of blockchain technology is no longer being considered in the context of cryptocurrencies alone. Today, blockchain technology is being increasingly considered as a possible infrastructure layer for traditional financial assets like publicly traded stocks and real estate. This has led to an increasing interest in the concept of asset tokenization—a method that involves the use of real-world assets to create digital tokens on a blockchain. In this context, the concept described by Beyond Crypto: Using Robinhood Chain to Trade Tokenized Stocks and Global Real Estate in Self-Custody is a part of this larger trend and represents the continued exploration of how regulated assets may one day be integrated with blockchain technology in a way that maintains user control.
This topic is not about an existing market or concept but is centered on ideas, models, and new frameworks. Specifically, it explores how tokenized stocks and tokenized real estate might theoretically be enabled by a blockchain infrastructure, commonly known as robinhood chain, and how self-custody might work within regulatory frameworks.
Moving Beyond Cryptocurrencies
The first applications of blockchain technology were related to cryptocurrencies that could function without the need for conventional financial systems. However, over time, there has been interest in whether blockchain technology could be used for existing financial instruments.
Blockchain-based settlement of traditional assets
Digital forms of regulated financial products
Combining decentralized technology with regulatory frameworks
These advancements do not mean that financial institutions will be replaced. Rather, they indicate a potential shift in market infrastructure.
What Are Tokenized Stocks?
Tokenized stocks are digital assets that aim to represent economic exposure to shares of publicly listed companies. In many models, these tokens are backed by underlying shares held by a regulated custodian or brokerage entity, ensuring that each token corresponds to a defined claim or exposure. Based on the legal framework, tokenized stocks can be considered as:
Fractional interests in shares held and fully backed by a regulated custodian, with tokens issued against those reserved shares
Contractual claims that are pegged to the market price of a stock
Limited economic interests without voting rights
In general, tokenized stocks are considered securities. This implies that they are governed by the same legal framework as traditional stocks.
Important aspects that are often considered
Fractional access to expensive stocks
Potential for faster settlement times compared to traditional clearing infrastructure
Programmable logic for compliance or transfer restrictions
It is important to note that tokenized stocks do not necessarily offer direct ownership.
Tokenization of Global Real Estate
Real estate tokenization is the extension of the same concept to real estate assets. Instead of buying the whole real estate, investors can invest in digital tokens representing a property-owning entity.
Models of real estate tokenization
Tokens representing shares in a property-owning company
Tokens representing revenue from rental income
Fractional ownership models with legal agreements
Although blockchain technology can simplify record-keeping, real estate tokenization does not eliminate the need to comply with local property laws, taxes, and registration requirements.
What is Self-Custody?
Self-custody is a concept where digital assets are stored in wallets where the user has control over the private cryptographic keys instead of relying solely on custodians. In practice, this may include dedicated blockchain wallets such as Robinhood Wallet or other non-custodial solutions that allow users to manage tokenized assets directly.
Key components of self-custody
User control over asset access
Verification of ownership on-chain
Decreased reliance on account-based custody models
When self-custody is applied to tokenized stocks or real estate, the complexity increases. Even if the tokens are self-custodied, the underlying assets can still use regulated custodians and legal agreements off-chain.
Concept of Robinhood Chain
Robinhood Markets, Inc. has mentioned blockchain-related projects that aim to develop digital asset infrastructure, tokenization, and on-chain settlement. In this regard, robinhood chain is generally referred to as a conceptual or developing blockchain solution rather than a fully operational public blockchain.
General purposes possibly linked to robinhood chain
Enabling tokenized forms of regulated assets
Investigating blockchain-based settlement solutions
Allowing compatibility with self-custody wallets, including solutions such as Robinhood Wallet
Remaining compliant with regulatory standards
These points are indicative of exploration and development rather than the existence of operational trading for tokenized stocks or properties.
How Trading Tokenized Assets Could Work
In a theoretical blockchain-based framework, tokenized asset trading might follow a hybrid on-chain and off-chain process.
Illustrative process
A regulated entity holds the underlying asset
Digital tokens are issued to represent defined rights
Tokens are recorded and transferred on a blockchain
Compliance rules are enforced programmatically
Legal claims remain governed by traditional contracts
This model aims to improve transparency and settlement efficiency without removing regulatory oversight.