Robinhood CEO Pushes US to Set Clear Rules for Tokenized Stocks

Robinhood CEO Vlad Tenev is urging US regulators to build a framework for tokenized stocks, warning the country risks losing ground to overseas markets. He described the financial system as entering a global tokenization shift, one he previously predicted would reshape traditional finance.

Already Live Overseas

Robinhood offers tokenized US stocks in more than 120 countries, giving users exposure to over 190 stocks, including dividends. These tokens are backed one-to-one by underlying shares, though holders don’t directly own the stock itself.

Settlement Speed Is the Key Argument

Tenev pointed to the 2021 GameStop trading frenzy, when Robinhood restricted purchases after clearinghouse collateral demands spiked, as proof that traditional settlement systems strain under pressure. He said real-time blockchain settlement could reduce that risk significantly, building on the industry’s recent shift from two-day to one-day settlement.

Trading Hours and Transfers Also at Stake

He also argued tokenization could enable true 24/7 trading and faster asset transfers between financial firms, bypassing the delays common in traditional broker systems.

Regulation Remains the Roadblock

US securities laws around custody, clearing, and shareholder rights still apply regardless of blockchain use. Tenev said he expects future tokenized shares to carry standard shareholder rights if regulations allow, and floated eventually extending the model to private companies and real estate. He closed by urging US policymakers to act quickly.