A decentralized exchange (DEX) backed by Robinhood is expanding into tokenized stocks and derivatives as platforms compete to build onchain markets for conventional assets.
Arcus, a DEX built by the team behind the dYdX decentralized trading platform and powered by Robinhood Crypto, launched tokenized stocks and futures on the Robinhood Chain on Tuesday, according to an announcement shared with Cointelegraph.
company earlier fired spot markets when Robinhood Chain launched on July 1. Arcus offers over 95 equity tokens, perpetual markets and crypto assets via a standalone trading account, with Paxos-issued USDG stablecoin serving as the primary collateral and settlement asset.
The launch comes at a time when crypto companies and financial platforms are increasingly competing to build infrastructure for tokenized real assets (RWA), while regulatory issues around access and product structure remain a key challenge for the sector.
Related: Bernstein raises Robinhood’s price target, citing tokenization and forecasting markets
Self-custody shapes the approach to onchain commerce
The Arcus launch includes tokenized versions of stocks from some of America’s largest companies such as Nvidia, Tesla, Apple, Microsoft, Meta, Google and Amazon, as well as perpetual markets tied to stocks, exchange-traded funds, commodities, indices and crypto assets.
The platform uses a self-custody model, allowing users to maintain control over their assets rather than depositing them on a centralized exchange. Arcus uses Privy, a wallet infrastructure company that helps apps create and manage cryptocurrency wallets by allowing users to sign up via email or social logins.
Source: Robinhood Chain
Users who already own cryptocurrencies can connect existing self-service wallets, including MetaMask, Ledger and WalletConnect, with the company citing support for additional Ethereum-compatible wallets.
Tokenized stocks face regulatory questions
Arcus said its exchange tokens are unavailable in the US, Canada, the UK and other restricted jurisdictions, highlighting the different regulatory approaches to tokenized securities in different markets.
Cointelegraph reached out to Arcus for clarification on the restrictions but had not received a response by the time of publication.
Regulators in markets including the US and UK are examining how blockchain-based representations of conventional assets fit into existing financial frameworks, addressing issues around custody, ownership and market structure.
The launch adds another player to the growing race to build infrastructure for tokenized assets, with platforms including the Coinbase-backed base exploring ways to bring conventional financial products online.
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