Robinhood Securities says it has secured approval to behave as an IPO underwriter, transferring from a distribution position into the primary underwriting group alongside Wall Avenue banks.
Chief govt Vlad Tenev mentioned in a Tuesday X submit that Robinhood Securities is “now authorized to function an underwriter,” with out specifying which regulator granted the approval, a course of that usually includes oversight from the Securities and Trade Fee (SEC) and the Monetary Trade Regulatory Authority (FINRA).
Framing the transfer because the “pure subsequent step” after launching IPO Entry in 2021, Tenev mentioned the query in fairness capital markets had shifted from “why allocate to retail in any respect?” to “how large can the allocation be?”
Robinhood secures underwriter standing. Supply: Vlad Tenev
His feedback land as SpaceX reportedly considers making as a lot as 30% of its record-setting providing obtainable to retail buyers and as demand already runs at near 4 instances the deliberate dimension.
Crypto rails race for SpaceX
Robinhood’s push to promote IPO shares on to app-based merchants comes as crypto platforms race to construct parallel rails across the identical listings.
Main exchanges have begun providing different entry to personal markets by way of tokenized pre-IPO merchandise, together with Bybit’s xStocks, Kraken’s pre-IPO fairness tokens and Coinbase’s secondary markets.
On the derivatives facet, a Tuesday report from Talos and Coin Metrics argues that onchain pre-IPO perpetuals have gotten a significant worth discovery venue in their very own proper.
Liquidity is more and more a hybrid of retail merchants, crypto-native funds and systematic market makers, in response to the report, with SpaceX contracts on Hyperliquid producing billions in quantity and a whole bunch of tens of millions in open curiosity.
The report highlights Cerebras Techniques, the place Hyperliquid’s pre-IPO futures tracked the inventory’s eventual opening stage inside about 1%, whereas underwriters priced the IPO itself far decrease.
Samar Sen, vice chairman of worldwide markets at Talos, informed Cointelegraph that underwriters and retail platforms like Robinhood are more and more more likely to monitor these indicators for high-profile listings as a supplementary enter for assessing demand, although not as a substitute for conventional book-building.
For an underwriter, pre-IPO perpetuals are “unlikely to find out retail versus institutional allocations on their very own, however they’ll present a further sign round investor demand forward of itemizing,” he mentioned.
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