Robinhood Explores Tokenized ETF With T. Rowe Price

Robinhood Crypto is exploring a tokenized exchange-traded fund product with $1.9 trillion asset manager T. Rowe Price, according to an announcement from Robinhood. The potential collaboration aims to bring exposure to actively managed investment funds onto the Robinhood Chain blockchain network.

Stock Token on Robinhood Chain

Under the discussions announced on October 9, the companies are considering a Stock Token linked to an actively managed ETF. If developed and approved, it would mark Robinhood's first Stock Token tied to an ETF whose investments are actively selected by a fund manager. The proposed instrument would operate on Robinhood Chain, an Ethereum layer-two network launched on July 1, built using Arbitrum technology and utilizing Chainlink price feeds.

T. Rowe Price managed approximately $1.9 trillion in assets at the end of August. The talks involve T. Rowe Price Digital Assets, part of the investment manager's digital asset business. However, the companies have not disclosed a launch date, ticker, pricing structure, management fees, or whether the arrangement will involve an existing fund or a separately developed product.

Regulatory and Structural Requirements

Robinhood clarified that any resulting offering is subject to multiple conditions, including legal due diligence, relevant issuer board approval, finalized product terms, and regulatory clearances across each jurisdiction where the product might be offered.

Under Robinhood's current product structure, existing Stock Tokens are issued by Robinhood Assets (Jersey) Limited as tokenized debt securities using the ERC-20 standard. They provide price exposure to publicly traded equities and funds but do not grant direct legal ownership or shareholder voting rights. The company has restricted the offering to eligible customers outside the United States, with further limitations applying in Canada, the United Kingdom, and Switzerland.

Key facts

• Robinhood Crypto and T. Rowe Price are exploring a tokenized ETF product for Robinhood Chain.
• T. Rowe Price managed approximately $1.9 trillion in assets as of August 31.
• The proposed Stock Token would be the first Robinhood token tied to an actively managed ETF.
• Offerings remain subject to legal reviews, board approval, finalized terms, and regulatory clearances.