Robinhood Submits 42-Page RWA Policy to SEC, Eyes National Regulation and Tokenization Hub

Publicly listed fintech firm Robinhood has submitted a 42-page proposal to the U.S. Securities and Exchange Commission (SEC) to modernize a regulatory framework for tokenized real-world assets (RWA). The company argues that such a framework is essential to integrate RWAs—blockchain-based representations of traditional financial instruments—into the broader U.S. financial system. 

To that end, the proposal outlines Robinhood’s strategic vision for launching its platform, the Robinhood RWA Exchange (RRE), designed to serve institutional and retail investors.

For context, real-world asset tokenization involves converting traditional financial instruments (such as bonds, equities, or real estate) into digital tokens on a blockchain. This process enables:

• Faster settlement 
• Enhanced transparency
• Lower operational costs 

Estimates from the Boston Consulting Group and Ripple project that the global RWA market could reach $18.9 trillion by 2033.

Related: Tokenization of Real World Assets (RWA): A Comprehensive Review

Robinhood’s proposal emphasizes that the current state-by-state regulatory system is outdated and impedes industry growth. According to the company, the absence of standardized federal rules is a key obstacle to innovation and prevents the development of a unified, liquid market for RWAs.

Robinhood’s Proposal: Key Regulatory Pillars

In its 42-page filing, Robinhood lays out a detailed regulatory blueprint addressing the issuance, circulation, and oversight of tokenized real-world assets. The proposal outlines the following core components:

• Federal Standards for Issuance

Robinhood calls for tokenized RWAs to be recognized as legitimate financial instruments, fully equivalent to their offchain counterparts, without being reclassified as derivatives or synthetic products.

• Onchain Transparency and Auditability

The proposal requires RWA platforms to use blockchain infrastructure to record all activity, enabling public verification and real-time notarization of data.

• KYC/AML Compliance Under FATF Guidelines

Robinhood proposes mandatory compliance with global anti-money laundering and identity verification standards, proposing integration with established providers such as Jumio and Chainalysis.

• Launch of Robinhood RWA Exchange (RRE)

The upcoming platform will adopt a hybrid model—offchain order matching and onchain transaction clearing. This architecture is designed to deliver ultra-low latency (<10 microseconds) and throughput of up to 30,000 transactions per second.

Robinhood estimates that its proposed architecture could reduce annual operating costs by 30% and eliminate settlement delays typically seen in traditional financial markets. 

According to the company’s roadmap, RRE is expected to reach $10 billion in TVL and onboard over 5 million users within its first three years. As a result, the initiative goes beyond regulatory advocacy, positioning RRE as a core infrastructure project and a potential cornerstone for RWA trading in the U.S. market.

Related: What Is TVL and How to Calculate It?

Market Impact and Regulatory Landscape

Robinhood’s proposal could become a defining moment in the push to establish unified regulatory standards for tokenized assets in the U.S. In a market still governed by a fragmented patchwork of state-level oversight, the company advocates for a federal model designed to meet the realities of digital finance. 

If successfully executed, the RRE launch would set a key precedent, enabling tokenized assets, from equities to real estate, to circulate within a legal and predictable framework.

As firms like BlackRock (BUIDL) and JPMorgan (Kinexys) accelerate their involvement in the space, Robinhood’s initiative underscores growing competition for infrastructure leadership in the emerging Securities 2.0 sector. It also signals a broader transition from experimental pilots to institution-grade platforms aligned with regulatory compliance and market expectations.