Quick overview

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Robinhood proposed a uniform federal approach to regulating tokenized real-world assets to the US Securities and Exchange Commission (SEC).

 

The recent initiative aims to modernize and clarify the financial system. In a detailed 42-page document, the trading platform argues that RWAs, which are blockchain-based representations of physical assets such as stocks, bonds, and real estate, should be governed by the same regulations as their traditional counterparts.

The original financial identity of these digital assets would be preserved, instead of being classified as synthetic or derivatives.

Implementing such a system, as stated by Robinhood, would facilitate their integration into the existing regulatory framework.

The trading platform also stated that the current state-by-state, disjointed securities oversight is detrimental to innovation and unsuitable for the developing tokenized economy. The Real World Asset Exchange (RRE), a platform for off-chain trade execution with on-chain settlement, is suggested as a solution to this problem to increase efficiency and transparency.

Additionally, the platform would integrate robust compliance tools, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) solutions, via collaborations with companies such as Chainalysis and Jumio. Robinhood’s plan for tokenized real-world assets, when interest in the RWA market is still rising. They tokenize.