Robinhood, the U.S. financial platform, is ramping up its expansion into a comprehensive business model that integrates securities, cryptocurrencies, and decentralized finance (DeFi) on its proprietary blockchain. By linking users acquired through stock brokerage to crypto and blockchain-based financial products, Robinhood aims to create a unified platform that merges traditional finance with digital assets.
In contrast, South Korea maintains separate regulatory frameworks for securities and cryptocurrencies. Crypto businesses focus on spot trading, exchanges, and custody, while financial investment firms primarily handle securities-related activities. Industry experts worry that South Korean companies may lag behind global financial platforms, as they struggle to implement a business model like Robinhood’s, which seamlessly connects stocks, crypto, its own blockchain, and DeFi within a single user base.
According to DeFiLlama, a crypto data platform, Robinhood’s recently launched Robinhood Chain surpassed 10 billion USD in trading volume on decentralized exchanges (DEX) within just a week. This milestone came about two months after its mainnet launch.
Robinhood started as a stock brokerage platform, offering trading services for stocks, options, and cryptocurrencies in the U.S. After establishing its user base, it’s now venturing into its own blockchain and on-chain finance.
Robinhood Chain will integrate tokenized assets linked to stocks and exchange-traded funds (ETFs), as well as crypto trading and DeFi services. The platform enables users to access external DEXs and financial protocols through its own wallet, while expanding its offerings to include lending, borrowing, and perpetual futures. However, the availability of specific products, operating entities, and user eligibility varies by country due to regulatory differences.
Similar business expansions are occurring across the global financial and crypto industries. Previously, brokerages and crypto exchanges competed over trading fees, product offerings, and user acquisition within their respective markets. Now, the scope of competition has broadened to include wallets, blockchains, tokenized assets, and financial infrastructure such as payments and settlements.
In South Korea, the distinct regulatory frameworks for securities and cryptocurrencies make it challenging to replicate business models like Robinhood’s.
Financial investment firms, licensed under the Capital Market Act, handle securities trading and brokerage. In contrast, crypto businesses are subject to regulations focusing on trading, exchange, transfer, custody, and management of digital assets.
Consequently, South Korean crypto exchanges face limitations when it comes to directly handling securities, or when securities firms attempt to offer crypto trading and DeFi services on a single platform. This structure makes it difficult to connect traditional financial services, cryptocurrencies, and proprietary blockchains within one user base, as Robinhood does.
Notably, concerns have been raised about the lack of clear operational standards for crypto lending, borrowing, DeFi, and derivatives in South Korea. Even if firms develop their own blockchains, the scope for linking these to existing financial products or crypto services remains unclear.
Industry insiders believe these differences could hamper the long-term business expansion of South Korean financial and crypto firms. While overseas companies build their own blockchains to expand into on-chain finance, South Korean operators must compete based on the businesses permitted within their respective sectors.
If global operators successfully integrate stocks, cryptocurrencies, derivatives, and DeFi into a single platform and blockchain ecosystem, South Korean users may shift their investment and trading activities to overseas platforms or on-chain markets.
An industry representative stated that while platforms that connect securities, cryptocurrencies, and even their own blockchains and DeFi are emerging overseas, South Korean crypto businesses continue to engage in limited competition focused on spot trading and custody. Without predictable regulations and a solid framework for experimenting with new products, domestic companies risk losing their opportunity to compete in the global market.
