Robinhood Equity Token (RHET) is available for Funding on Swarm

PC: Swarm Fund logo

Robinhood Equity Token (RHET) is announced and available for funding on the Swarm platform. The Robinhood Equity Token (RHET) is the first of many tokens representing equity in private companies expected to launch on the platform.

Robinhood is a popular commission-free stock trading app that recently earned a $5.6 billion in valuation, according to Bloomberg article.

Swarm is blockchain-based infrastructure to tokenize real assets of value. Each tokenized asset is represented by a unique security token, created using the SRC20 standard. An entity is created for the specific purpose of holding this equity on swarm platform. This entity is tokenized so that investor can invest. The token ownership in the entity on swarm platform represents equity in the given company.

The SWM token itself is used for gas, governance, and incentives on Swarm. This is similar to Ethereum network where ETH serves as gas for applications running on Ethereum. How this entity is created on Swarm platform is not explained in the announcement.

CEO of Swarm Fund, Philipp Pieper said, “Secondary equities transactions and refinancing of legal entities which hold private company equity are not new in the United States. What’s new here is the tokenization of these assets, and the doors opened by this innovation. One of the key innovations of tokenization is that token owners can participate in the value creation of the very network they are part of. Swarm is bringing this paradigm shift to companies that are key players within this movement, but have yet to permit the network to participate.”

According to the announcement, accredited investors can reserve their stake in a fund created to hold equity in Robinhood.