TLDR
- Robinhood CEO Vlad Tenev believes tokenization will revolutionize finance and merge crypto with traditional assets.
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Robinhood offers tokenized stocks in Europe and plans to tokenize real estate next.
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Tenev compares tokenization to a “freight train” that’s unstoppable, signaling major industry disruption.
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Robinhood sees tokenized stocks and real estate becoming the future of 24/7 global trading.
Robinhood CEO Vlad Tenev made bold predictions at the Token2049 conference in Singapore, stating that tokenization will inevitably “eat the entire financial system.” Tenev emphasized that the increasing shift toward digital assets, such as tokenized equities and real estate, is on a fast, unstoppable path. This development, he argued, will disrupt traditional finance, merging it with the crypto world and ultimately transforming how global markets operate.
Tenev likened tokenization to a “freight train” that is barreling towards the financial industry’s core. He emphasized that, in the near future, all assets will likely exist on-chain, making the distinctions between crypto and traditional finance fade. According to Tenev, markets where stocks, property, and private company shares can be traded 24/7 on-chain are imminent.
Robinhood’s European Strategy: Tokenized Stocks Lead the Way
In line with his vision, Tenev shared how Robinhood is already taking significant steps toward the tokenization of traditional assets. Robinhood launched tokenized stocks in Europe, giving global investors access to U.S. equities in a way that is faster and more efficient than traditional methods.
For Tenev, this marks the beginning of a broader movement where tokenized stocks will become as common as stablecoins in accessing American equities for non-U.S. investors.
Tenev pointed out that tokenized equities could replicate the role stablecoins have played in offering digital access to traditional currency. He emphasized that this move would pave the way for 24/7 trading without geographical or time-zone restrictions. Tenev also underscored that Europe is moving faster than the U.S. in terms of regulations that allow for on-chain asset trading, which is why Robinhood chose to launch its tokenized stocks in that region.
Real Estate Tokenization: The Next Big Move for Robinhood
Robinhood’s future plans are equally ambitious. Tenev revealed that the company is setting its sights on tokenizing real estate. He noted that tokenizing property would be no different from tokenizing private companies like SpaceX or OpenAI. The process involves pooling assets into a company structure and issuing tokens against them.
However, Tenev acknowledged the complexity of tokenizing real estate, citing legal, custody, and investor protection challenges. Despite these obstacles, he remains confident that real estate will become the next asset class to benefit from tokenization.
This step would make property trading as easy as stocks or stablecoins, a game-changer for both institutional and retail investors. Tenev’s comment that tokenization “will eventually eat the entire financial system” underscores his belief in the vast potential of this shift.
Regulatory Hurdles and the U.S. Lag in Tokenization Adoption
While Tenev is optimistic about tokenization’s potential, he also addressed the regulatory hurdles that could slow down adoption in the U.S. He compared the situation to the lack of high-speed trains in the U.S. — despite functioning infrastructure, there is little urgency for improvement.
The financial system in the U.S. “works well enough,” according to Tenev, which delays the country’s push toward fully tokenized financial assets. Meanwhile, Europe’s faster-moving regulatory environment has positioned it as the leader in adopting these new technologies.
For Robinhood, the main challenge is not technological but regulatory. Although Europe has moved ahead with frameworks that facilitate tokenized trading, the U.S. is still behind, and Tenev acknowledged that it could take longer for similar regulations to take root in the country.
