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Robinhood Launches Stock Tokens
Vijay Jadhav
July 06, 2025
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Weekly Newsletter
📦 US-Vietnam Finalize Trade Deal
💰 Tariff Revenue Surges In May
💼 Strong Jobs Report
🌐 How Robinhood’s Private Company Stock Tokens Work
📊 Analysis Of The BIS Report On Stablecoins
QUOTE OF THE WEEK:
“You know, I've said it before, I feel like I'm a broken record at this point. But every time I'm asked this question, I say, you know, the rumors of the demise of the American consumer are greatly exaggerated. We're seeing good demand. We just reported over a month ago—our prior quarter—and the strength was apparent. The growth was really, really good. You know, high 30s year over year in spending and all the other metrics. Even better. So nothing, you know, nothing too dark to report.” - Max Levchin, Affirm CEO
KEY US ECONOMIC EVENTS NEXT WEEK:
MARKET CLOSE:
CNBC - EOD July 3rd
WEEKLY MARKET WRAP:
Good Afternoon. Another positive week for the markets, with Nvidia approaching the $4 trillion market cap. Nasdaq and S&P 500 both closed at all-time highs, and the Dow 30 is just 0.41% away from its all-time high. The macro data was strong, including the jobs report. In addition, Trump signed the Tax Cuts and Jobs Act. Next week is relatively quiet with just FOMC minutes releasing on Wednesday until we kick off earnings season with major banks reporting on July 15th.
Below are the key things to note this week:Strong Macro Data:
The hard macro data reported this week remained strong. The non-farm payroll, manufacturing PMI, and unemployment rate - all were better than consensus estimates.
LSEG, Reuters
US-Vietnam Trade Deal:
Both countries finalized the trade deal. The most important aspect of the deal to note is that it aims to close a loophole where some countries were shipping their goods to Vietnam and then rerouting them to the US to avoid higher tariffs. Goods routed through Vietnam from other countries will be subject to a 40% tariff.Tariff Revenue Surges:
The higher tariffs in May increased the revenue by $24 billion. Most countries are negotiating with the US, and tariff revenues are also on the rise. Exactly the way I had predicted in the April 6th issue of this newsletter - read here
For the week:
The S&P 500 is up 2.25%, the Nasdaq is up 2.15%, and the Dow 30 is up 3.32%.
Barchart
CNN's Fear & Greed Index now stands at 78 (Extreme Greed) out of 100, up 13 points from last week. Details here
The top five trending stocks on Reddit are SPY, Webull, Tesla, Nvidia, and Intercontinental Exchange. Read More
Here is a summary of this week’s key economic releases:
Target Rate Probabilities for the July 30th FOMC Meeting:
CURATED INSIGHTS & ANALYSIS:
OpenAI and SpaceX Tokens:
Robinhood launched tokenized stocks for its EU customers. It includes over 200 US stocks; however, the major highlight was the tokens of privately held companies, such as SpaceX and OpenAI. These tokens do not give buyers exposure to the equity of these privately held companies, but they provide indirect exposure enabled through Robinhood’s ownership in a special-purpose vehicle.
OpenAI distanced itself by asking investors to be cautious, to which Robinhood's CEO responded with the tweet below, expecting this offering to grow quickly, with more private companies interested in joining the fray. This offering democratizes the investment options for retail investors who understand the risks and want to gain exposure to these privately held innovative companies early for outsized gains in the future when they go public:
Future of Stablecoins:
In its latest report, the Bank for International Settlements raises concerns about stablecoins—but the core argument does not make sense. In my latest post, I explain why stablecoins are not intended to be sovereign currencies and how the GENIUS Act already addresses the key risks highlighted by the BIS.Key takeaways:
✅ High-Quality Collateral: Stablecoins must hold HQLA instead of relying on uninsured bank deposits.
🔁 Direct Redemption: Retail users should have access to simple, 1:1 redemption—just like institutional clients.
🌐 Multi-Chain Compatibility: Stablecoins must be compatible across multiple Layer 1s to ensure low fees and interoperability.
FRONT PAGES:
Big Beautiful Bill: Trump signed a sweeping tax-and-spending bill Friday, locking in his 2017 tax cuts and adding new breaks—including a senior bonus, bigger SALT deduction, and relief for tip income, OT pay, and auto loans. Read
US-Vietnam Trade Deal: Trump announced a trade deal with Vietnam, imposing a 20% tariff on its U.S. imports while granting the U.S. tariff-free access to Vietnamese markets. Goods routed through Vietnam from other countries will face a 40% tariff if re-exported to the U.S. Read
Strong Inflows in US Equity Funds: U.S. equity funds experienced robust inflows as stocks reached record highs amid optimism over AI, despite the July 9 tariff pause deadline approaching. Investors added $31.6B—the biggest weekly net purchase since Nov 13, 2024, per LSEG Lipper data. Read
Reuters
Strong Labor Market: U.S. job growth held steady in June, defying expectations of a slowdown amid trade and fiscal uncertainty. Employers added 147,000 jobs vs. 110,000 expected, and the unemployment rate edged down to 4.1% from 4.2%. Read
Tokenized Stocks: Robinhood has launched stock tokens for EU customers, providing access to over 200 U.S. stocks and ETFs, including Nvidia, Apple, and Microsoft. Read
Bank Payout Boost: Wall Street’s biggest banks raised dividends after clearing this year’s Fed stress tests—a bar lowered by regulators softening prior requirements. Read
Bloomberg
EARNINGS UPDATE:
Constellation Brands Miss: STZ missed Q1 sales and profit estimates as tariff concerns and economic uncertainty dampened demand for beer and wine. U.S. alcohol makers face pressure from shifting trade policies amid already weak consumer demand. Read
EARNINGS PREVIEW:
Date | Symbol | Name | Time |
15-Jul | BLK | Blackrock Inc | Before Open |
15-Jul | C | Citigroup Inc | Before Open |
15-Jul | JPM | JP Morgan Chase & Company | Before Open |
15-Jul | WFC | Wells Fargo & Company | Before Open |
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This newsletter's content is for informational and educational purposes only and should not be considered trading or investment recommendations. All the opinions in this newsletter are personal and do not belong to any organization.