The crypto landscape continues to evolve at a rapid pace, with key developments in asset recovery, tokenized equities, and expanded platform offerings. Institutional custody solutions are advancing to address irreversible asset loss, while major exchanges and trading platforms are bridging traditional finance with blockchain technology through tokenized stocks and new trading products.
Circuit Introduces Automatic Asset Recovery for Institutions
Crypto custody provider Circuit has launched a new system designed to solve one of the most significant challenges in digital asset management: the permanent loss of private keys. The Automatic Asset Extraction (AAE) engine automatically detects threats or lost keys and moves assets to a secure vault without requiring manual intervention. This solution aims to meet the stringent requirements of institutional players who cannot afford irreversible losses.
Two early adopters include Tungsten, a custodian based in the UAE, and Palisade, a provider of custody infrastructure. According to Circuit’s CEO, Harry Donnelly, institutional adoption of cryptocurrencies has been hindered by the risk of losing access to assets. Unlike retail investors, who may see lost coins as a reduction in circulating supply, institutions operate under strict fiduciary duties that make asset recovery a top priority.
It is estimated that as much as 18% of the total Bitcoin supply—approximately 3.7 million BTC—may be permanently inaccessible due to lost keys. Circuit’s recovery engine arrives at a time when demand for secure, institutional-grade custody is growing. 👉 Explore advanced custody solutions
Tokenized Stocks Gain Traction on Major Platforms
Tokenized stock trading is now live on several leading crypto exchanges and DeFi protocols. Backed Finance, a key issuer in this space, has enabled the trading of over 60 traditional equities in the form of blockchain-based tokens. These tokens are fully backed by real shares and can be traded around the clock, including on weekends when traditional equity markets are closed.
Supported companies include Apple, Tesla, Microsoft, Netflix, and Coinbase. The tokens are available on centralized exchanges like Kraken and Bybit, as well as on Solana-based DeFi platforms including Kamino and Raydium. Phantom wallet integration is also underway, allowing users to trade and swap tokenized stocks directly from their self-custody wallets.
Bybit has emphasized that its offering is compliant with MiFID II regulations in the EU. Kraken highlighted benefits such as on-chain transparency, lack of trading volume limits, and instant settlement. Both platforms are also developing support for dividend distributions in the future.
Robinhood Expands EU Services with Tokenized Stocks and Futures
Robinhood has significantly expanded its offerings in the European Union with the introduction of tokenized stocks and perpetual futures trading. Through its EU application, users can access more than 200 tokenized stocks and ETFs, including major U.S. companies like Amazon, Apple, and Tesla. These products are structured as exchange-traded notes and tokenized on the Arbitrum blockchain for low fees and fast settlement.
In addition, Robinhood now offers perpetual crypto futures with leverage of up to 3x for EU traders. The platform has also introduced Solana and Ethereum staking for users in the U.S., EU, and EEA regions. Looking ahead, Robinhood has announced plans to develop a new Layer 2 network on Arbitrum to improve scalability and performance.
This strategic expansion reflects Robinhood’s shift from crypto-only products to a broader suite of financial services in Europe. Following the announcement, the company’s stock price rose by more than 8%, reaching a new all-time high.
Frequently Asked Questions
What are tokenized stocks?
Tokenized stocks are digital representations of traditional equities issued on a blockchain. They are backed by real shares and allow for 24/7 trading, including outside standard market hours. These tokens combine equity exposure with the efficiency of blockchain settlement.
How does Circuit’s recovery system work?
Circuit’s Automatic Asset Extraction engine monitors for threats or lost private keys. If an issue is detected, the system automatically transfers assets to a pre-authorized recovery vault without requiring manual input, reducing the risk of permanent loss.
Which companies are supported through tokenized stocks?
Major companies like Apple, Amazon, Tesla, Microsoft, Netflix, and Coinbase are among those available as tokenized stocks on platforms such as Kraken, Bybit, and Solana DeFi applications.
What is Robinhood offering in the EU?
Robinhood now provides EU users with access to tokenized stocks, ETFs, and perpetual futures with leverage. The company is also developing a Layer 2 blockchain on Arbitrum to enhance its trading infrastructure.
Are tokenized stocks regulated?
Yes, issuers like Backed Finance and platforms such as Bybit operate under regulatory frameworks such as MiFID II in the European Union, ensuring compliance with traditional securities laws.
Can I trade tokenized stocks in a self-custody wallet?
Yes, with integration into wallets like Phantom, users will be able to trade and swap tokenized stocks directly in a non-custodial setting, combining DeFi accessibility with traditional market exposure. 👉 Learn more about token trading strategies