Robinhood has submitted a detailed proposal to the US Securities and Exchange Commission (SEC), calling for the creation of a federal framework to regulate tokenized real-world assets (RWAs), which represent a potential $30 trillion market, Forbes reported on May 20.
The 42-page filing outlines a legal infrastructure that would allow digital tokens representing traditional financial instruments, such as equities, bonds, and real estate, to be treated as equivalent to the underlying assets.
The proposal aims to modernize how assets are issued, traded, and settled in the US by integrating blockchain-based mechanisms within existing securities law.
Unified framework
Robinhood’s proposal emphasizes that current approaches to RWA tokenization have remained largely fragmented, operating in isolated pilots and regulatory sandboxes despite staggering growth.
By contrast, the company is advocating for a unified national framework that would enable broker-dealers to issue and trade tokenized securities under a standardized compliance model, removing the need for parallel systems.
According to the report, the initiative includes plans for a new platform called the Real World Asset Exchange (RRE), which would feature off-chain trade matching paired with on-chain settlement.
The platform would incorporate know-your-customer (KYC) and anti-money-laundering (AML) tools provided by third-party providers such as Jumio and Chainalysis to ensure compliance with global regulatory standards.
If adopted, the framework could eliminate legal ambiguities surrounding asset ownership and reduce settlement times, while preserving investor protections under existing securities law.
Retail access to market infrastructure
Robinhood, widely known for its role in retail stock and crypto trading, is now positioning itself as a contributor to regulatory infrastructure to bring traditional finance on-chain.
Its filing argues that tokenized assets should not be classified as derivatives or synthetic instruments but recognized as direct representations of traditional financial products.
The report noted that the company is not proposing new blockchain technology, but rather legal interoperability to anchor tokenized finance to existing compliance standards.
Robinhood’s approach seeks to open the door for broader institutional adoption, offering a scalable path to onchain financial markets within the US legal system.
While the SEC has not yet responded to the proposal, Robinhood’s filing may serve as a test case for how regulators view asset-token equivalence. The success of the initiative will likely depend not only on regulatory reception but also on the ability to attract institutional participation and demonstrate utility at scale.
As of now, Robinhood’s submission represents one of the most structured efforts by a US-regulated broker to formalize the role of tokenized RWAs within mainstream finance.
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