Once upon a time, fintech firms were content being clever apps that helped people trade stocks or buy crypto. Now, they’re going a giant step further: they’re building their own blockchains. Companies like Robinhood, Kraken and Coinbase aren’t just dabbling in crypto — they’re laying down digital rails to control how money, stocks, and digital assets flow across the internet.
Why is this happening? Because the old model of simply plugging into someone else’s blockchain doesn’t cut it anymore. Fintechs want more power over how transactions work, how fast they settle, and how much money they can make from fees and services. It’s like moving from renting office space to owning your own skyscraper. Owning the blockchain gives these companies the freedom to innovate, monetize, and stay ahead of fierce competition.
Why now? Trigger factors in 2025
So why is 2025 suddenly the tipping point for fintechs to build their own chains? A few powerful trends have come crashing together:
Market demand has exploded. More investors want assets to move 24/7, settle instantly, and cost less to trade. They’re tired of waiting days for money to clear or paying layers of fees. Fintechs see a goldmine in offering smoother, cheaper, and more engaging experiences.Regulatory tailwinds are shifting. Governments and regulators are finally warming up to tokenization and blockchain innovation, instead of treating them like shady experiments. From Europe to the U.S., new rules are making it safer for fintechs to tokenize real assets — like stocks, bonds, or even private shares — without fearing legal blowback.Fintechs want platform power. In the old days, a fintech app was just one more user on someone else’s blockchain. Now, they want to be the ones running the network, collecting fees, and deciding who builds apps on top of their rails. It’s the difference between being a shopkeeper in a mall or owning the entire mall.
According to sources like the Financial Times and insights shared on platforms like 7X (formerly Twitter), the big fintech players are eyeing the next phase of financial services where they’re not just service providers — but true infrastructure owners. And that’s a game-changer for the entire financial industry.
What’s at stake: fintech platforms becoming platform‑providers
Here’s the real kicker: fintechs aren’t satisfied being middlemen anymore. Robinhood, Kraken and Coinbase want to transform from platforms into ecosystems. Think of Apple’s App Store or Amazon’s marketplace. By owning the blockchain layer, fintechs can:
Capture more revenue from transaction fees and on-chain servicesOffer faster, tailored user experiencesAttract developers to build apps on their chains, creating new revenue streamsBuild brand loyalty by offering unique features no one else can replicate
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Tokenization: The Engine Driving the Trend
Tokenized stocks explained
Let’s cut straight to the chase: tokenized stocks are basically digital twins of real-world shares. Instead of owning a piece of paper that says you own Apple stock, you get a digital token representing that same share. Simple, right?
But not all tokenized stocks are created equal. There are two main flavors:
One-to-one backed tokens: These tokens are backed by actual shares held somewhere in custody. So, if you own a token representing one Tesla share, a real Tesla share exists in a vault for you. This makes the token legally and economically equivalent to the real thing.Synthetic offerings: These don’t represent a real share sitting in a vault. Instead, they mirror the price of the underlying stock, kind of like a contract for difference (CFD). They’re more flexible and easier to trade globally but carry more regulatory risk because they’re purely derivatives.
Sources like Fast Company and Axios have been buzzing about how tokenized stocks are blurring the lines between traditional finance and crypto. It’s one of the hottest innovations on the scene, reshaping how we think about investing.
Benefits for users: 24/5 access, fractional ownership, faster settlement
Why are people so hyped about tokenized stocks? Because they solve a ton of headaches investors face today:
Trade nearly around the clock: Traditional markets close every day, but crypto exchanges run 24/7. Tokenized stocks give investors 24/5 access to trade stocks, even when Wall Street is asleep.Fractional ownership: Not everyone can drop hundreds or thousands of dollars on a single share of a big tech company. Tokenization lets you buy just a sliver of a share, making investing accessible to almost anyone.Faster settlement times: No more waiting two or three days for trades to settle. With tokenized assets, settlement can happen in seconds, freeing up funds and cutting operational risk.
FinTech Weekly and Robinhood’s newsroom have highlighted these benefits, pointing out how tokenization is pulling traditional finance into the future. For many users, it’s like going from a rotary phone to a smartphone overnight.
Real-world examples
We’re not talking about some distant sci-fi future here. Tokenized stocks are already live:
Robinhood’s EU rollout: Robinhood recently launched over 200 tokenized US stocks and ETFs in Europe, riding on Arbitrum technology. It’s a massive step for making American equities more accessible to international investors, with perks like lower fees and faster trades.Kraken’s xStocks on Solana: Kraken is getting in on the action with xStocks, a product offering tokenized equities via Solana’s blockchain. It’s part of a bigger plan to merge traditional finance with crypto-native speed and efficiency.Coinbase’s SEC-backed ambitions: Meanwhile, Coinbase is pursuing tokenized equities but is taking a cautious, regulatory-first approach. They’re aiming for SEC-backed products that might eventually become fully compliant tokenized stocks in the US market.
Reports from Crypto Briefing, MarketWatch, and Yahoo Finance show just how seriously big players are betting on this trend. These aren’t experimental side projects — they’re major business moves.
Strategic Advantages of Custom Blockchains
Value retention: no more paying gas/fees to third-party chains
Here’s one big reason fintechs are building their own blockchains: money. Every time a fintech relies on someone else’s blockchain, they have to pay transaction fees — often called gas fees. Those fees might seem small, but for companies handling millions of trades, they add up fast.
By launching their own chains, fintechs like Robinhood, Kraken, and Coinbase keep that money in-house instead of handing it over to Ethereum, Solana, or any other third-party network. It’s like owning your own toll road rather than paying someone else every time you drive.
UX & performance: low-latency, T+0 settlements, millisecond responses
Speed is another huge advantage. Let’s face it — nobody likes waiting around for transactions to process. Fintechs building custom blockchains can fine-tune the tech for blazing-fast performance:
Low latency: Users want immediate feedback when they hit “Buy” or “Sell.” Custom chains can deliver near-instant confirmations.T+0 settlements: Traditional finance often runs on T+2 or T+3, meaning trades settle two or three days after execution. Custom chains can settle trades the same day — or even the same minute.Millisecond responses: Apps feel smoother, snappier, and more reliable, keeping users happy and engaged.
Gate.com and other tech publications have spotlighted how Robinhood and similar companies are chasing sub-second transaction speeds to rival the best fintech apps.
Platform control: fee capture, governance, monetization
Owning the blockchain isn’t just about cost savings — it’s about control. With a custom blockchain, fintechs can:
Set their own fees instead of paying third-party networksDecide who can build apps on their blockchainOffer unique features, like custom smart contracts for financial productsBuild new revenue streams by monetizing infrastructure, just like cloud providers monetize data centers
It’s a business model shift from being a service provider to being the platform others build on. Think how Apple makes money from both selling iPhones and running the App Store.
Competitive positioning: differentiation vs incumbents (traditional brokers and exchanges)
Finally, custom blockchains help fintechs stand out. Traditional brokers and exchanges still rely on legacy systems and centralized databases. They’re fast — but not blockchain-fast. Fintechs launching their own chains can offer:
Lower costs24/7 availabilityInstant settlementsProgrammable finance features like automatic dividend payments or smart contract-enabled compliance
The Technical Foundations: Optimism vs Arbitrum vs Custom L2s
Why Arbitrum? Scalability, WASM, performance for TradFi loads
Let’s talk tech for a second. If you’ve been reading about Robinhood’s blockchain moves, you’ve probably seen the name Arbitrum pop up everywhere. So, why are fintech giants flocking to it?
Arbitrum is what’s known as a Layer 2 solution. In plain English, it’s like adding an express lane on a crowded highway. Ethereum, while powerful, can get congested and pricey when too many people use it at once. Arbitrum helps clear the jam, making transactions faster and cheaper.
But that’s not the only draw. Arbitrum’s support for WebAssembly (WASM) is a big deal. WASM lets developers write code in languages beyond Ethereum’s native Solidity, like Rust or C++. This flexibility is a lifesaver for fintech engineers who want to plug their existing systems into blockchain tech without learning an entirely new programming language.
And let’s not forget performance. Traditional finance, or TradFi as it’s often called, demands high throughput and reliability. Arbitrum is designed to handle these kinds of intense transaction loads, which makes it perfect for apps dealing with millions of trades daily. Sources like Investopedia point out that for fintechs eyeing tokenized stocks, Arbitrum hits a sweet spot between speed and security.
Optimism’s role: Coinbase Base & Kraken Ink as precedents
Arbitrum isn’t the only player in the game. Enter Optimism. This is another Layer 2 solution that’s gotten major backing from some big names, including Coinbase and Kraken.
Coinbase Base: When Coinbase decided to build Base, its own Layer 2 blockchain, it chose to leverage Optimism’s tech. Why? Because Optimism offers a highly scalable environment that keeps costs low for users. Plus, it’s built to integrate seamlessly with the broader Ethereum ecosystem, which is critical for a company managing billions in crypto trades.Kraken Ink: Kraken’s blockchain ambitions have also taken inspiration from Optimism’s approach. Kraken wants to deliver lightning-fast trades and better user experiences without the sky-high fees that sometimes plague Ethereum’s main network. Optimism’s efficiency and compatibility make it a compelling choice for fintechs that crave both performance and lower operating costs.
Reports from Yahoo Finance, CoinDesk, and Gate.com have been buzzing about how these Layer 2 solutions are reshaping the infrastructure that underpins digital finance. For fintechs, choosing the right Layer 2 can be the difference between a sleek user experience and a slow, expensive mess.
Building bespoke chains: evolving existing stack vs tailoring for compliance and risk control
Here’s the big question for fintechs: should they stick with existing Layer 2 networks like Arbitrum or Optimism, or build their own custom blockchains from scratch?
There are pros and cons to both:
Evolving existing stacks: It’s faster and cheaper to build on a proven network like Arbitrum. Fintechs get security, scalability, and an ecosystem of tools without reinventing the wheel. Perfect for getting to market quickly.Bespoke chains: On the flip side, custom blockchains allow fintechs to tailor every detail. They can build compliance into the protocol, tweak governance rules, and optimize performance for specific financial services. For companies navigating strict regulatory environments, this level of control is gold.
Ultimately, fintechs are weighing speed against control. Some are racing to market on established Layer 2s, while others see long-term value in building their own digital highways. Either way, the blockchain landscape is becoming a lot more specialized.
Regulatory and Compliance Landscape
Navigating tokenized securities: SEC no-action letters
Let’s talk about the elephant in the room: regulation. Tokenized stocks and custom blockchains sound exciting, but they’re firmly on the SEC’s radar. The big issue? Whether tokenized assets count as securities under US law.
In some cases, the SEC has issued “no-action letters,” which basically say, “We won’t sue you if you follow these rules.” It’s not the same as official approval, but it’s a green light that lets companies move forward without fear of massive fines or lawsuits.
Crypto Briefing and DL News have reported how fintechs like Coinbase are trying to build fully compliant tokenized stock platforms. They’re working hand in hand with regulators to avoid missteps that could bring operations grinding to a halt. It’s a delicate dance, but fintechs know that winning regulatory trust is key to scaling their blockchain businesses.
Banking charters vs fintech flex: Kraken’s trust bank ambitions vs partnership approaches
Another wrinkle in the story is whether fintechs should become banks themselves. Kraken, for example, has been exploring the idea of a trust bank license. This would allow them to offer a wider range of financial services while staying on the right side of regulators.
Trust bank path: A trust bank charter means you’re regulated like a bank, with strict rules around capital reserves, audits, and consumer protections. It’s costly and time-consuming to obtain, but it offers big benefits, like direct access to the Federal Reserve’s payment systems.Partnership approach: Other fintechs prefer to partner with existing banks. This gives them flexibility without the regulatory headaches. They can focus on building great products while relying on bank partners to handle the nitty-gritty compliance work.
Kraken’s trust bank ambitions show how some fintechs are thinking long-term. Owning a banking license gives them more credibility and control, but it’s definitely not the easy route.
Regional diversity: EU pilot first, US rollout pending approvals
Finally, geography matters. The regulatory climate in Europe is currently more favorable for tokenized assets than in the US. That’s why we’re seeing pilots launch first in places like the EU, where rules are clearer and regulators are more open to innovation.
Robinhood, for instance, rolled out its tokenized stock offering in Europe before looking at the US market. The idea is to prove the model in friendlier regions, gather data, and build momentum before tackling stricter US regulations.
In the US, fintechs are moving cautiously. They’re waiting for more clarity from the SEC and other agencies before going full throttle with tokenized stocks and custom blockchains.
For fintech giants, regulatory strategy is every bit as important as tech innovation. A single misstep can mean fines, lawsuits, or getting shut out of key markets. So they’re treading carefully, knowing that whoever cracks the regulatory puzzle will have a massive first-mover advantage.
Use Cases Beyond Equities
Tokenized private/company shares: OpenAI, SpaceX exposure
Let’s be real: stocks are just the tip of the iceberg when it comes to what can be tokenized. One of the most exciting areas fintechs are eyeing is private company shares. Imagine getting exposure to unicorns like OpenAI or SpaceX without waiting for them to go public.
Traditionally, private equity has been reserved for big institutional investors or ultra-wealthy individuals. Regular folks were locked out. Tokenization changes that game entirely. Companies like Robinhood are exploring ways to let users invest in fractional shares of private companies. Instead of needing millions to participate in the next tech giant’s growth, you could start with a few dollars.
Business Insider and the Robinhood Newsroom have both covered how fintechs are exploring this new frontier. It’s a way to democratize access to some of the world’s most exciting startups, giving everyday investors a chance to ride the wave early.
Of course, it’s not without challenges. Valuation transparency, regulatory hurdles, and liquidity concerns all need to be addressed. But the potential upside is massive, and fintechs know it.
DeFi integration: branching into staking, perpetuals, DeFi yields
Another major frontier is decentralized finance, or DeFi for short. Fintechs like Kraken and Coinbase are looking to blend traditional finance with DeFi’s innovative features.
Here’s what that could look like:
Staking services: Users can lock up their tokens and earn rewards. It’s like earning interest on a savings account but potentially with higher returns.Perpetuals: These are derivative products that let traders speculate on the price of assets without an expiration date. DeFi perpetuals have been booming, and fintechs want a piece of that action.DeFi yields: Fintechs could help users tap into complex yield strategies in DeFi protocols. Instead of navigating confusing crypto wallets and risky contracts, investors could access these products through trusted fintech apps.
Barron’s has highlighted how the lines between fintech and DeFi are starting to blur. For fintechs, DeFi is both a challenge and an opportunity. The challenge is managing the complexity and risk. The opportunity is unlocking new revenue streams and keeping users glued to their platforms.
Banking tools: custody, stablecoins, cross-chain transfers, dividend automation
Beyond investing, fintechs are turning their sights to full-fledged banking services built on blockchain rails.
Custody: Safe storage for digital assets is a top priority. Fintechs want to offer bank-grade security so users feel confident parking significant funds in crypto.Stablecoins: Think digital dollars that don’t fluctuate wildly like Bitcoin. Fintechs can launch their own stablecoins for cheaper payments, remittances, and cross-border transactions.Cross-chain transfers: Users shouldn’t care if their assets live on Ethereum, Solana, or any other network. Fintechs are building bridges to move assets across chains seamlessly.Dividend automation: Imagine holding a tokenized stock and automatically receiving dividends in your digital wallet. Blockchain makes that level of automation easy and transparent.
AInvest and other fintech publications have pointed out how these tools could make fintechs the ultimate one-stop shop for both traditional finance and crypto services. It’s not just about trading anymore — it’s about building an ecosystem where money flows without friction.
Competitive Landscape: Who’s Building What?
Robinhood: from tokenized EU stocks to Robinhood L2
Robinhood has been making headlines for launching tokenized US stocks and ETFs for European customers. But that’s just phase one. They’re now working on their own Layer 2 blockchain, built on Arbitrum’s technology.
Why the shift? Robinhood wants more control, faster transactions, and the ability to build unique financial products that others can’t easily replicate. Their plan is to own the infrastructure, capture more revenue, and keep their brand at the center of the next financial revolution.
MarketWatch and the Robinhood Newsroom have been buzzing about how this move could position Robinhood not just as a trading app, but as a blockchain powerhouse. If they pull it off, they’ll be able to offer tokenized assets, DeFi services, and banking features all under one roof.
Kraken: Ink and xStocks, Solana bridge
Kraken has its eyes on the same prize but is taking a slightly different route. They’re rolling out xStocks, which allow users to invest in tokenized stocks using Solana’s blockchain. Solana’s lightning-fast speeds and low fees make it a solid choice for handling high trading volumes.
Beyond xStocks, Kraken is also exploring its own blockchain initiative, code-named Kraken Ink. The details are still under wraps, but the goal seems clear: offer users a seamless, high-speed trading experience while avoiding hefty fees on other networks.
By building bridges to Solana and experimenting with its own chain, Kraken is hedging its bets. They’re not putting all their eggs in one blockchain basket, which is smart in a market that evolves fast.
Coinbase: Base plus tokenized equities ambitions
Coinbase is another heavyweight in this race. They launched Base, their own Layer 2 blockchain, using Optimism’s technology. Base is designed to bring lower fees and higher speeds, but it’s also Coinbase’s first step toward bigger ambitions.
Coinbase is quietly preparing for tokenized equities in the US market. They’re working closely with regulators to ensure compliance, aiming to be the first major crypto exchange offering fully regulated tokenized stocks. It’s a cautious approach, but if successful, it could open the door to massive new revenue streams.
Financial Times, CoinDesk, and Crypto Briefing have all covered how Coinbase’s Base could be the backbone for everything from tokenized assets to new DeFi products. Coinbase isn’t just trying to stay relevant — they’re gunning to be the infrastructure provider for the next era of finance.
Others: Bybit, Gemini, Revolut, major banks eyeing stablecoins
Robinhood, Kraken, and Coinbase may grab the headlines, but they’re not the only ones making moves.
Bybit is exploring tokenized products and blockchain-powered trading platforms to differentiate itself in a crowded exchange market.Gemini has been pushing hard into stablecoins and DeFi products, aiming to offer both institutional-grade services and consumer-friendly apps.Revolut is dabbling in crypto and blockchain integration, looking for ways to keep its massive user base engaged.Major banks like JPMorgan and Bank of America are investigating stablecoins and private blockchains to streamline payments and settlements.
Barron’s and the Financial Times have reported that even traditional banks are realizing they can’t ignore blockchain anymore. While fintechs may be moving faster, the big banks have deep pockets and regulatory relationships that could help them catch up.
What’s Next: Roadmap for Fintech-Blockchain Integration
Global rollout phases: EU → US → affluent markets
So, where is all of this headed? Right now, fintechs are using Europe as a testing ground for blockchain innovations. The EU has clearer rules and regulators who seem more open to experimentation. That’s why Robinhood and other players are starting there, rolling out tokenized assets and new blockchain services to European users first.
Once they’ve ironed out the wrinkles and proven the tech, the next logical step is the United States. Despite being a tougher regulatory environment, the US is too big and too lucrative to ignore. After that, fintechs have their sights set on other affluent regions like Asia and the Middle East, where high-net-worth individuals and institutions are hungry for innovative financial products. It’s a strategic leapfrog approach: prove it in friendlier markets, then scale it globally.
Expanding asset types: bonds, real estate, derivatives
So far, the spotlight has been on tokenized stocks and crypto assets. But that’s just scratching the surface. The next big wave will involve other asset classes:
Bonds: Tokenized bonds can offer faster settlement times, lower issuance costs, and greater transparency.Real estate: Imagine owning a slice of a commercial building in Manhattan or a beachfront villa in Bali without having to buy the whole property.Derivatives: From options to futures, tokenizing complex financial instruments could unlock new ways for investors to manage risk and seek returns.
These aren’t just theoretical ideas. Sources like Yahoo Finance and the Financial Times have been reporting on how fintechs are already planning products that push tokenization well beyond equities. The potential for a more diverse and liquid financial market is enormous.
Banks entering the game: JPM, BoA planning stablecoins
It’s not just fintechs driving this revolution. Big banks are jumping in too. JPMorgan, Bank of America, and other financial giants are actively exploring stablecoins and private blockchains to improve payments, settlements, and cross-border transfers.
For example:
JPM Coin is already being used for corporate payments, helping clients move money quickly and efficiently.Bank of America has hinted at launching stablecoin products to compete in digital payments and settlements.
These banks bring enormous resources, regulatory relationships, and customer trust. While fintechs move fast, banks can leverage decades of financial infrastructure to scale blockchain solutions globally. Reports from CoinDesk, Business Insider, and arxiv.org all signal that we’re heading into a new phase where traditional and digital finance will converge.
Toward a “Superchain”: interconnected fintech blockchains
Here’s the ultimate vision: a “Superchain.” Instead of isolated blockchains run by individual fintechs, imagine a network of interconnected blockchains that talk to each other seamlessly.
In this world, Robinhood’s blockchain could interact directly with Kraken’s or Coinbase’s networks. Assets could move freely across chains, creating a unified financial system where users enjoy instant transfers, low fees, and endless flexibility.
Industry chatter from sources like DL News and FinTech Weekly suggests this isn’t just a sci-fi idea. Protocols and standards for cross-chain communication are already being developed. The end goal is a global blockchain backbone that could reshape how money, stocks, and assets flow around the world.
Conclusion
As Robinhood, Kraken, and Coinbase sprint toward owning their own blockchains, one thing is clear: the future of finance won’t be built on legacy rails alone. These fintech giants are betting big on custom blockchains to deliver faster trades, lower fees, and innovative products that traditional finance can’t match. With tokenized assets expanding beyond stocks into private equity, bonds, and even real estate, and major banks like JPMorgan and Bank of America joining the race with stablecoins and blockchain experiments, we’re watching the dawn of a new financial ecosystem where control, speed, and connectivity rule the game. The question isn’t if blockchain will transform finance — it’s how fast and who will own the rails when the dust settles.
Why Fintech Giants Like Robinhood, Kraken and Coinbase Are Launching Their Own Blockchains? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.