Robinhood CEO Discusses Advantages of Tokenized Stocks
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 2h ago- Trading Freeze Lessons: Robinhood CEO Vlad Tenev highlighted that the 2021 GameStop trading freeze was “one of the strangest equity market failures in recent history,” caused by outdated financial infrastructure combined with unprecedented trading volume and volatility, leading to massive deposit requirements and trading restrictions affecting millions of customers.
- Need for Tokenization: Tenev emphasized that the launch of tokenized stock platforms is crucial for achieving real-time settlement, as the current one-day settlement in the US is still too long, especially extending to four days during long weekends, and tokenization could alleviate this pressure.
- Capital Demand and Risk: During the 2021 trading freeze, Robinhood lacked sufficient cash to meet settlement requirements, with Tenev revealing that the company raised $3 billion in two days to bolster its capital reserves, which understandably left retail investors furious about their inability to purchase GameStop.
- Opportunity for Regulatory Clarity: Tenev believes now is a “timely opportunity” for regulatory clarity, urging collaboration with the SEC to push for sensible tokenization guidelines to ensure that trading restrictions like those seen in 2021 do not occur again.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
