Key Takeaways
- Under the plan, a platform called the Real World Asset Exchange (RRE) will be set up and will include a combination of off-chain matching for trading efficiency with on-chain settlement to ensure transparency and traceability.
- The document proposes to allow existing broker-dealers to manage tokenised assets under the present regulatory framework
Leading financial service company, Robinhood has filed a 42-page proposal with the U.S. Securities and Exchange Commission (SEC), looking to set up a federal framework system to enable the legal issuance and trading of tokenized real-world assets (RWAs) across the US.
Under the plan, a platform called the Real World Asset Exchange (RRE) will be set up and will include a combination of off-chain matching for trading efficiency with on-chain settlement to ensure transparency and traceability.
Further, the platform will integrate identity verification, anti-money-laundering tools through Jumio and Chainalysis to meet global KYC/AML requirements. The document proposes to allow existing broker-dealers to manage tokenised assets under the present regulatory framework without having the burden of setting up a new structure.
According to Forbes, as part of Robinhood’s vision to ensure token-asset equivalence, a token representing a US Treasury bond, for example, will be treated as the bond itself and not a derivative or synthetic product.
Robinhood believes this will allow institutions and broker-dealers to handle tokenized RWAs within the existing regulatory system, helping in potentially streamlining custody, trading and settlement processes.
Robinhood also hopes that the plan will eliminate regulatory duplicates and resolves ambiguities citing the ownership of instruments, helping in setting up clear regulations
