Robinhood’s push for 24/7 tokenized stock trading directly challenges established exchanges like the NYSE by diverting liquidity. Galaxy Digital analysts warn this initiative could fragment market activity as traders migrate toward continuous trading availability. The platform’s plan to tokenize equities on its proprietary blockchain would enable round-the-clock transactions, unlike traditional markets’ limited hours.
This shift threatens traditional exchanges’ revenue models that rely on trading fees during specific sessions. Tokenization also introduces programmability features impossible in conventional systems, such as instant settlement and fractional ownership. These technical advantages could accelerate adoption among younger investors already comfortable with crypto platforms.
The competitive pressure comes as traditional finance institutions face declining trading volumes. Robinhood’s crypto-native user base gives it distribution advantages, while its zero-commission model disrupts established pricing structures. Market analysts predict this could force legacy exchanges to accelerate their own blockchain integration efforts to retain relevance.
