Home Robinhood Explores First-ever Tokenized Actively Managed ETF With T. Rowe Price

Robinhood Explores First-ever Tokenized Actively Managed ETF With T. Rowe Price

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Robinhood Explores First-ever Tokenized Actively Managed ETF With T. Rowe Price
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  • Robinhood Crypto is looking into working with T. Rowe Price, a company that manages $1.9 trillion in assets to offer access to actively managed ETFs on Robinhood Chain.
  • The new product might be the first of its type. It will need approval, from regulators and must meet other conditions.
  • Robinhood already has than 190 stock tokens that are connected to stocks and ETFs. These tokens give people exposure without actual ownership or voting rights.

Robinhood Crypto is looking at a partnership, with T. Rowe Price, a $1.9 trillion asset manager to bring exposure to actively managed ETFs on the Robinhood Chain. Robinhood Crypto wants to add ETF options to the Robinhood Chain. If finalized, the proposed product could introduce a new type of stock token linked to an actively managed investment fund.

In an October 9 post on X, Robinhood Crypto said it was discussing the potential collaboration with T. Rowe Price Digital Assets. The proposal would allow users to access tokenized exposure to an actively managed ETF through Robinhood Chain.

“It would be the first Stock Token of its kind. Institutions are here, and our rails are ready,” Robinhood Crypto wrote on X.

The proposed collaboration remains under discussion and depends on legal due diligence, approval from the issuer’s board, final product terms, and regulatory clearances in relevant jurisdictions.

T. Rowe Price Partnership Could Expand Robinhood’s Tokenization Push

Robinhood already offers than 190 stock tokens linked to stocks and ETFs. These include tokens for NVIDIA, Google, Apple and Invesco QQQ. The tokens give investors exposure, to the underlying U.S. Securities. Holders do not get voting rights. They also do not have legal ownership of the assets.

The tokens trade around the clock through supported wallets and venues. They also use on-chain price feeds, while dividends are reinvested through a multiplier rather than paid as cash distributions. The underlying securities are held by a custodian to back the tokens on a one-for-one basis.

The proposed T. Rowe Price product would differ from tokens tracking individual stocks or passive index-tracking funds. An actively managed ETF allows its portfolio manager to adjust holdings, asset weightings, and trading decisions based on the fund’s investment strategy.

Robinhood’s ETF Tokenization Plan Could Bring Active Funds Onchain

Tokenizing such a fund could bring actively managed investment products onto blockchain infrastructure, although the final structure and investor access remain unconfirmed.

According to the market prediction, Robinhood has purchased Bitcoin for the first time to add to its corporate balance sheet. Johann Kerbrat, Senior Vice President and General Manager of International & Crypto at Robinhood, confirmed that the trading firm bought $25 million worth of Bitcoin.

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

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