Robinhood Wallet Can Now Route Stock Token Trades Through the Arcus Exchange

Swaps of Stock Tokens in Robinhood Wallet can now be filled through Arcus, a decentralized exchange from the team that built dYdX, after the wallet integrated the exchange’s trading API, Arcus said on Thursday. The integration gives eligible users in supported jurisdictions a route to more than 190 of the tokens.

Stock Tokens have been available in Robinhood Wallet since Robinhood Chain opened on July 1. They trade at all hours, and Arcus has argued that a token whose fair value is set on another market, on a different schedule, is poorly served by both order books and automated pools. “A resting order placed Friday afternoon can be stale by Sunday night,” it wrote in July. Rely on automated pools alone, it added, and “prices follow a formula rather than information.”

Arcus instead runs a request-for-quote system: a trader asks for a price, professional market makers return binding quotes, and the best combination settles in a single transaction or not at all. Robinhood Wallet “can source liquidity from Arcus alongside other routing providers” for the swaps, Arcus said. Robinhood’s July announcement listed Uniswap, Rialto, Lighter, Arcus and 1inch as exchanges through which wallet users would trade the tokens.

Robinhood Crypto is a strategic investor in Arcus, which launched exclusively on Robinhood Chain. “Robinhood Chain was purpose-built to advance onchain RWA adoption,” Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, said in Arcus’s announcement. “Platforms like Arcus are key to making that vision a reality by integrating their liquidity and execution infrastructure into Robinhood Wallet.”

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Arcus also opened a points program on Thursday, and a Robinhood Wallet swap executed through Arcus “will be eligible for boosted Arcus points,” it said. Arcus’s release words that more cautiously, saying a user “may be eligible for Arcus Points.” Arcus said limit orders on Stock Tokens will be available to wallet users through Arcus in the wallet’s dapp browser.

Since launching in July, Arcus said, it has handled more than $5 billion in volume across spot and perpetual markets from more than 15,000 traders, with a peak day above $500 million, and its Stock Token list has grown from more than 90 to more than 190. Its points post describes those three months as a private beta that required a manual whitelist; from Thursday, new traders need an invite code. In August it added leveraged tokens.

Stock Tokens are not available in the U.S. Robinhood describes them as debt securities issued by Robinhood Assets (Jersey) Limited that “provide economic exposure to underlying securities but do not grant investors any legal or beneficial rights” in them. CEO Vlad Tenev said in September that in-kind redemption and voting are coming.

Related Listen: Robinhood’s Tokenized AMC Shares Spark a Fight Over What Stock Tokens Really Are

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