Robinhood explores tokenized ETF with $1.9T T. Rowe Price

The proposed collaboration would extend Robinhood’s Stock Token business into funds where professional portfolio managers decide which securities to buy, hold or sell.

Unlike a traditional index ETF that follows a predetermined benchmark, an actively managed ETF allows fund managers to adjust investments based on their strategies and market assessments. The potential Robinhood product would give eligible token holders exposure to such a fund through a blockchain-based instrument.

In its October 9 announcement, Robinhood described the offering as a possible first for its Stock Token business. The company stated that it was exploring the product with T. Rowe Price Digital Assets, which operates within a large U.S. investment management group.

T. Rowe Price has expanded its ETF business in recent years. Its latest available regulatory disclosures showed assets under management of $1.9 trillion at the end of June, while the company’s August figures remained at approximately the same level.

The manager reported $1.90 trillion in assets under management as of August 31, including investments across equities, fixed income, multi-asset strategies and alternative assets.

Although Robinhood has identified T. Rowe Price as the potential partner, neither company has disclosed which actively managed ETF could serve as the underlying investment.

Robinhood has not published the proposed token’s ticker, pricing structure, management fees or launch schedule. The companies have yet to announce whether the arrangement will involve an existing fund or a separately developed product.

How would the new Robinhood Stock Token work?

Robinhood’s existing Stock Tokens are blockchain-based securities designed to provide economic exposure to the prices of publicly traded stocks and ETFs.

According to the company’s documentation, the instruments are issued by Robinhood Assets (Jersey) Limited and structured as tokenized debt securities. They do not give holders direct legal ownership of the underlying shares or shareholder voting rights.

The tokens use the ERC-20 standard, allowing them to operate within compatible wallets and blockchain applications. Robinhood uses Chainlink price feeds to provide on-chain pricing information, while the instruments can be transferred and held through supported blockchain services.

The company states that existing Stock Tokens are backed one-for-one by corresponding securities held through a U.S.-based custody partner. However, Robinhood has not disclosed whether the proposed actively managed ETF token would follow exactly the same backing and issuance arrangements.

Robinhood Chain launched its public mainnet on July 1, 2026, as an Ethereum layer-2 network built using Arbitrum technology. The platform supports tokenized financial assets and applications for trading and lending.

The Robinhood blockchain launch introduced a new generation of Stock Tokens that eligible customers could hold in their wallets and use across supported decentralized applications.

Trading activity has since expanded. In August, tokenized stock trading on Robinhood Chain reached $1 billion in cumulative volume through Uniswap, according to Uniswap founder Hayden Adams.

The network supports tokens linked to companies including Nvidia, Apple and Alphabet, alongside selected investment funds. The proposed T. Rowe Price collaboration would introduce actively managed ETF exposure to this existing product structure.

Robinhood Stock Tokens remain unavailable to U.S. investors

Despite Robinhood’s U.S. headquarters, its blockchain-based Stock Tokens are not available to American investors under the current product structure.

The company has restricted the offering to eligible customers outside the United States, with further restrictions applying in Canada, the United Kingdom and Switzerland.

Robinhood’s existing tokens are not registered under U.S. securities laws. The company states that holders receive price exposure through tokenized debt instruments without becoming shareholders of the companies whose securities support the products.

In July, Robinhood confirmed plans to expand its blockchain services internationally, introducing new trading and lending products alongside its Stock Token business.

The legal structure of blockchain-based equities has remained an active issue among financial technology companies. Coinbase has been developing a separate model for tokenized stocks backed by underlying shares, with plans to provide direct shareholder rights through its proposed offering.

Robinhood’s proposed collaboration with T. Rowe Price remains subject to restrictions in each jurisdiction where the product might be offered. No announcement has confirmed whether the actively managed ETF token would become available in markets beyond those currently supported by Robinhood.

Robinhood and T. Rowe Price face regulatory approvals before launch

Following the October 9 announcement, Robinhood clarified that discussions with T. Rowe Price remain preliminary and that no product launch is guaranteed.

The company identified several conditions that must be satisfied before any offering proceeds. They include completion of legal due diligence, approval from the relevant issuer’s board, publication of final product terms and regulatory authorization wherever required.

The proposed arrangement remains a potential collaboration, meaning neither its commercial terms nor the final product structure has been announced.

In its accompanying statement, Robinhood cautioned that “no assurance can be given that any such approvals will be obtained.” The warning covers both the proposed collaboration and any product that could result from it.

The company has not announced a deadline for completing the reviews or identified the regulators that would need to approve the offering.

Meanwhile, Robinhood has continued developing its existing tokenized securities business. In October, the brokerage reported that trading activity involving its Stock Tokens was approaching limits under a U.S. Securities and Exchange Commission exemption covering certain tokenized equity activities.

Robinhood is separately working on adding features such as voting rights and in-kind redemptions to its stock-linked products, according to comments from Johann Kerbrat, the company’s senior vice president and general manager of Crypto and International.

The October 9 statements concerning T. Rowe Price did not specify whether those planned features would apply to the proposed actively managed ETF token.