The Vester Pulse | July 10, 2025

Sometimes the story can’t wait. While the Vester Pulse typically runs on Sunday, we will drop midweek editions when something big changes in crypto or finance. This is one of those times.

Robinhood goes Full Stack

On July 1st, Robinhood launched its most ambitious set of crypto products to date. This wasn’t a UI update, it was a signal of a long-term strategy shift. The company is now positioning itself not just as a brokerage, but as a builder of the infrastructure layer for modern finance.

“We envision a future where traditional and on-chain finance seamlessly converge,” said Johann Kerbrat, GM of Robinhood Crypto.

Here’s what was announced:

• Tokenized U.S. equities and ETFs for European users. More than 200 assets - some public, some private like SpaceX and OpenAI - are now tradable on Arbitrum, with near-24/5 trading hours and dividend rights. These are issued via regulated European partners. (Read More)

• Robinhood is building its own Layer 2 blockchain. This network will handle asset issuance, trading, settlement, lending, and staking - replacing much of what clearinghouses, exchanges, and brokerages do today.

• Additional rollouts include crypto futures trading with 3x leverage (EU only), ETH and SOL staking (US and EU), instant deposits, tax-lot automation, and credit card-linked crypto rewards.

Taken together, these announcements represent an attempt to internalize the stack, reduce third-party dependencies, and create a Robinhood-owned ecosystem across both traditional and crypto-native finance. The reaction from the market has been overwhelmingly positive, as you can see below.

Industry Reactions: OpenAI and the Tokenization Backlash

The most immediate backlash centered on Robinhood’s listing of a tokenized OpenAI equity instrument, despite OpenAI never authorizing such a product or any secondary trading of its private shares. The token appeared on Robinhood’s European platform via a third-party issuer offering synthetic exposure to private companies alongside traditional equities.

OpenAI quickly responded, stating it had no involvement in the listing. The move surprised both the company and its investors, raising concerns around brand misuse, misinformation, and retail misrepresentation. Legal experts noted that even if a third party handled issuance, Robinhood still bears responsibility for distributing and displaying the asset on its platform.

SpaceX was also among the tokenized offerings, despite being a tightly held private company with strict transfer controls. While synthetic exposure is not new, putting it on-chain and labeling it as “tokenized equity” invites a higher level of legal scrutiny.

Regulatory lawyers flagged several issues:

• Consent and IP: Listing synthetic shares without issuer consent may breach intellectual property norms, especially when the underlying companies are named explicitly.

• Misleading Representation: Even if backed by derivative exposure, the appearance of direct ownership or participation in private firms can mislead retail investors.

• Securities Law Gray Zones: Depending on jurisdiction, these tokens may be construed as unregistered securities or even unauthorized ETFs, especially when they include dividend rights.

Critics argue that this type of activity creates a “shadow market” for private equity, bypassing traditional listing, disclosure, and investor protection frameworks. As one fintech policy analyst noted:

Others in the crypto community were more divided. Some viewed the move as bold and inevitable, part of a longer-term shift toward open-access capital markets and continuous global trading. Others warned that without clear lines between synthetic exposure and real equity, retail confidence could erode quickly if one of these products backfires or is legally challenged.

European regulators have yet to formally respond, but observers expect this to draw scrutiny from both MiFID authorities and local financial regulators, particularly if the assets remain live and accessible to retail traders.

A firm trying to build trust as a global infrastructure player cannot afford missteps that suggest lax diligence or aggressive shortcuts, especially when the assets involved are tied to the most scrutinized names in AI and private equity.

Strategic Implications: Why This Matters

Robinhood is betting that the future of capital markets will be defined by programmable infrastructure, not user interfaces. This announcement signals a belief that traditional financial architecture is being hollowed out and that the next moat will be built at the infrastructure layer, where assets are issued, collateral is managed, and clearing occurs in real time.

The launch of a Layer 2 blockchain dedicated to asset lifecycle management is not a side project. If successful, it could collapse multiple revenue layers into one integrated flow Robinhood controls:

• Exchange fees

• Custody spreads

• Staking yield

• Settlement margin

This mirrors the strategy of vertically integrated crypto platforms like Coinbase, but with an added emphasis on cross-asset operability.

Tokenizing U.S. equities is shaping up to be a strategic wedge, not a novelty. By offering synthetic exposure to both public and private markets through on-chain wrappers, Robinhood is testing something fundamental:

Will users prioritize 24/5 liquidity and programmable ownership over issuer consent and regulatory clarity?

If the answer is yes, the traditional definition of what it means to “go public” may begin to erode. Access and liquidity could outweigh formal structure.

This also signals where Robinhood is headed. The company is preparing for a future where owning infrastructure, not just distributing product, defines the winners. Platforms that control issuance, settlement, and asset flow may ultimately outperform those that simply route trades.

But this comes with a new set of risks. Robinhood’s exposure now extends beyond user acquisition and fee compression. It includes protocol design risk, multi-jurisdictional regulatory friction, and the burden of infrastructure uptime.

In short, Robinhood is making a deliberate transition, from distribution layer to infrastructure layer. If it works, it won’t just compete with Coinbase or Schwab. It could find itself competing with the protocols and blockchains that underlie the next financial system.

Closing Thoughts

Robinhood’s move confirms what we’ve been building toward: the next generation of finance will live on-chain. But while Robinhood is focused on owning the rails, most investors still face a different problem - figuring out what’s real, what’s risky, and how to navigate it safely.

That’s where Vester comes in.

When announcements drop, when tokenized products appear overnight, when markets shift, we help you understand what it means, and how it affects your portfolio.

Want to track how tokenized equities evolve from here?
Ask Vester.

Want to assess the risk of staking exposure, or how new Layer 2s compare to existing chains?
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Does on-chain sentiment around AVAX match the price action?
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In crypto, speed without clarity is chaos. We give you both.

The regular Pulse returns this weekend. Let us know if you have any questions, and as always visit our Website and follow us on social media linked below!