Robinhood is developing a blockchain-based program to allow traders in Europe access to U.S. financial assets, two people familiar with the matter told Bloomberg.

Three blockchains, including Arbitrum (ARB), Ethereum (ETH) and Solana (SOL) are reportedly being considered for the new platform which will be in partnership with a digital asset firm, according to the report.

Tokenized assets have become a dominant area for traditional financial firms to push further into crypto. Several companies have launched tokenized funds in the past, with some analysts forecasting the market to grow to $23.4 trillion by 2033.

Tokenization refers to the process of creating a digital token for a traditional asset on the blockchain boosting data security and allowing faster transaction settlement and increased liquidity, among other things.

In January, Robinhood CEO Vlad Tenev criticized current U.S. regulations which have yet to provide a clear framework and rules for registering security tokens — for blocking what could be a major financial shift that could open up private-market investments to everyday investors through tokenization.

Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency tech development. I’m Margaux Nijkerk, the Ethereum protocol reporter on CoinDesk’s Tech team.

In this issue:

• Ethereum Activates ‘Pectra’ Upgrade, Raising Max Stake to 2,048 ETH
• Bitcoin Developers Plan OP_RETURN Limit Removal in Next Release
• Sam Altman’s World Crypto Project Launches in US With Eye-Scanning Orbs in 6 Cities
• Aztec’s Privacy Rollup Hits Testnet Amid Growing Demand

Network News

PECTRA FINALLY GOES LIVE ON ETHEREUM: Ethereum activated its long-awaited “Pectra” upgrade on Wednesday, marking the blockchain’s most significant overhaul since the Merge in 2022. The update aims to streamline staking, enhance wallet functionality, and improve overall efficiency. It arrives as Ethereum contends with rising competition and internal debates over its direction. A key element of the upgrade involves increasing the amount of ETH one can stake from 32 to 2,048. This change could help speed up and streamline operations for stakers, the vast network of companies and individuals who help keep the Ethereum network afloat. Previously, staking at scale required setting up multiple validators; now, stakers can consolidate up to that amount under a single node. — Margaux Nijkerk Read more.

BITCOIN CORE DEVS TO REMOVE OP_RETURN LIMIT, SPARKING DEBATE: The debate over Bitcoin’s OP_RETURN heats up, as developers of Bitcoin Core – the most popular node software – said they plan to scrap OP_RETURN entirely in the next release. The OP_RETURN limit is an 80-byte cap on the amount of arbitrary data that can be embedded in a Bitcoin transaction using a special, unspendable output field. The debate centered on whether lifting the 80-byte OP_RETURN limit promotes transparency and simplifies data use on Bitcoin, or whether it opens the door to abuse, spam, and a shift away from Bitcoin’s financial focus. — Sam Reynolds Read more.

WORLDCOIN COMES TO 6 U.S. CITIES: Sam Altman’s blockchain project, World, is launching in the U.S. – and said it intends to roll out 7,500 eye-scanning “orbs” in cities across the country by the end of the year. World’s orbs — chrome, bowling ball-shaped devices that scan a person’s eyeballs to confirm their identity — will initially be available to Americans in six “key innovation hubs,” the company said: Atlanta, Austin, Los Angeles, Miami, Nashville and San Francisco. Those who decide to take the plunge and gaze into the orb will gain access to the World app and receive an airdrop of World’s WLD token. By the end of the year, the project aims to have enough orbs spread throughout the U.S. to give 180 million Americans, more than half the population, access to World’s network.— Cheyenne Ligon and Margaux Nijkerk Read more.

AFTER 8 YEARS, AZTEC TESTNET IS LIVE: Aztec, a layer-2 rollup focused on privacy, shared that its testnet has finally gone live. The announcement comes as a wave of new privacy-focused solutions begins to capture the interests of large institutions that need confidentiality with large transaction batches. The team behind Aztec said that they have been working on the product for over 8 years, bringing the cutting-edge technology one step closer to the mainnet. — Margaux Nijkerk Read more.

In Other News

• Movement Labs, the development firm of the Movement network, has rebranded to «Movement Industries» and cut ties with co-founder Rushi Manche following controversy surrounding undisclosed MOVE token deals. The announcement came via the company’s X account early Tuesday, stating that “Movement Labs has terminated Rushi Manche’s employment and all affiliations with the company effective immediately.” The decision follows a CoinDesk report that first revealed secret agreements between Movement-linked entities and market makers during the project’s token launch. — Shaurya Malwa Read more.
• The price of gold has surged almost 29% this year, solidly beating the 3.8% gain in bitcoin (BTC). Even so, that’s failed to deter investors eager to add the largest cryptocurrency to their portfolios. BlackRock’s spot bitcoin ETF (IBIT) has attracted a net $6.96 billion in inflows since the start of the year, the sixth-largest amount of all exchange-traded funds, according to data from Bloomberg’s senior ETF analyst, Eric Balchunas. SPDR Gold Trust (GLD), the world’s largest physically backed gold ETF, slipped to the number seven position Monday with net inflows of $6.5 billion. IBIT’s outperformance indicates institutions’ persistent confidence in bitcoin’s long-term prospects despite the relatively dour price performance. — Omkar Godbole Read more.

Regulatory and Policy

• Democrats in the U.S. House of Representatives derailed what was supposed to be a joint hearing on crypto policy efforts on Tuesday, insisting that President Donald Trump’s personal crypto dealings were too urgent to allow other discussion on instituting industry regulations. — Jesse Hamilton Read more.
• New Hampshire has become the first state to allow the investment of its public funds into crypto assets with its governor signing the new law on Tuesday. The state beat a number of others to the punch this year as what had started as a surge in state lawmaker momentum had run into roadblocks over recent weeks. As the first to authorize its treasurer to set up such a reserve, New Hampshire could very well beat the U.S. government in forming a stockpile, too. — Jesse Hamilton Read more.

Calendar

• May 14-16: Consensus, Toronto
• May 19-23: Solana Accelerate, New York City
• May 20-22: Avalanche Summit, London
• May 27-29: Bitcoin 2025, Las Vegas
• May 27-29: ETHPrague, Prague
• June 8-22: Berlin Blockchain Week, Berlin
• June 30-July 3: EthCC, Cannes
• Sept. 22-28: Korea Blockchain Week, Seoul
• Oct. 1-2: Token2049, Singapore
• Dec. 11-13: Solana Breakpoint, Abu Dhabi

Shares of tech company Asset Entities (ASST) rose 194% on Wednesday after it announced that Strive Asset Management was merging with the NASDAQ-listed company to become a publicly traded Bitcoin (BTC) Treasury Company.

The deal, structured as a reverse merger, will leave the combined company operating under the Strive name and listed on the NASDAQ. Strive plans to build a sizable bitcoin reserve using novel investment and financing strategies designed to limit shareholder dilution.

One key strategy is a planned equity-for-bitcoin swap available to certain accredited investors, the companies stated in the press release. The exchange will use a tax provision known as Section 351, which allows appreciated assets to be contributed to a corporation tax-free in return for stock, subject to individual circumstances. The deal will not carry a premium to the company’s transaction price, according to the announcement.

Strive CEO Matt Cole, formerly a $70 billion fixed income portfolio manager, said the company aims to outperform bitcoin by using it as a benchmark for capital deployment. Strategies will include merging with overcapitalized firms to access discounted cash, employing leverage, and deploying structured products to hedge risk.

The company plans to expand its capital raising capacity to $1 billion post-merger through an effective shelf registration, offering flexibility to fund bitcoin purchases via equity and debt sales.

Strive has grown quickly since launching in 2022, managing roughly $2 billion and gaining attention for its opposition to ESG mandates. The merger, according to the company, is a next step in pushing for bitcoin adoption across corporate treasuries, a goal it will also advocate for among companies held in its funds.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.