Robinhood Markets Inc., a Nasdaq-listed financial services firm, has submitted a comprehensive proposal to the US Securities and Exchange Commission (SEC) outlining a framework for tokenizing real-world assets (RWAs). The proposal seeks to enable compliant issuance, custody, and trading of these assets through the firm’s initiative called the RWA Regulatory Exchange (RRE). 42 pages in length, the proposal advocates for federal licensing standards for tokenized assets and integration of KYC/AML protocols aligned with the Financial Action Task Force (FATF) Travel Rule. 1/ Robinhood’s RWA submission to the SEC’s Crypto Task Force lays out a comprehensive vision to tokenize RWAs to modernize markets and manage risk. Key highlights include: * RRE would operate on Solana and Base blockchains, achieving sub-10 microseconds latency. * Instantaneous settlement (T+0) instead of traditional two-day (T+2) cycle. 2/ The proposal seeks approval for a modified Form S-1 to accommodate unique disclosure and investor protection requirements for digital assets. * Allows broker-dealers to hold and trade both tokenized securities and non-securities within one regulated entity, following clear capital and custody guidelines. This move aims to increase market access and financial inclusion. * The RWA framework has the backing of prominent institutions such as VanEck, BlackRock, Franklin Templeton, and Apollo who have launched similar offerings based on blockchain technology.* 3/ The proposal positions Robinhood as a frontrunner in this paradigm shift for financial infrastructure.