“Tokenization Will Consume the Entire Financial System,” Says Robinhood CEO

Robinhood CEO Vlad Tenev has made a bold prediction that tokenization will reshape the foundations of global finance. 

Speaking at the Token2049 conference in Singapore, he compared the trend to a “freight train” that cannot be stopped. He added that, as a result, the line separating traditional finance and crypto will eventually disappear.

According to Tenev, the future of markets is one where assets of every kind, such as stocks, property, and even startup shares, exist on-chain and can be traded globally, 24/7.

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Robinhood’s Tokenization Strategy

Robinhood has already begun experimenting with this vision. For instance, in Europe, the platform now allows investors to trade tokenized versions of U.S. stocks. Moreover, the company has taken steps to tokenize shares of private companies, including OpenAI, one of the most closely watched startups today.

Furthermore, Tenev argued that tokenized equities could serve the same role in global finance that stablecoins play in digital currency markets. Just as stablecoins have become the easiest way for non-U.S. users to access dollars, tokenized stocks could serve a similar purpose. In turn, they may emerge as the standard gateway to American equities for investors outside the U.S.

That is why, he explained, Robinhood chose to launch stock tokens in Europe first. For him, the model represents the future of how global markets will operate: continuous, borderless, and blockchain-based.

U.S. Faces Regulatory Lag

While the crypto industry has applauded some of the progress the United States has made in digital asset policy, Tenev believes the country remains far behind. By contrast, he stated that Europe is moving faster in establishing frameworks for tokenized trading.

To illustrate this point, he likened the situation to America’s lack of high-speed trains. In his view, the U.S. financial system functions well enough that policymakers feel no urgency to push for innovation. “Medium-speed trains get you there well enough,” he said, suggesting that this complacency will slow the shift toward 24/7 tokenized markets.

Real Estate: The Next Frontier

Robinhood’s ambitions extend beyond equities. In fact, Tenev said the company is preparing to bring real estate into the tokenized economy.

Mechanically, the process is not much different from tokenizing private companies like SpaceX or OpenAI. Assets are pooled into a structured entity, and tokens are then issued to represent ownership stakes. In light of this, property could be bought, sold, and traded with the same ease as a stock or a stablecoin.

However, the idea is not without controversy. OpenAI itself dismissed the move to tokenize its private shares as “unauthorized,” while legal experts have warned that such offerings exist in a gray area. Even so, Tenev downplayed these challenges, describing them as symptoms of regulatory lag rather than fundamental roadblocks.

A Market with Massive Growth Potential

The global market for tokenized assets is still relatively small, estimated at $32 billion, according to data from rwa.xyz. Nevertheless, the opportunity is enormous when compared to the size of traditional markets. The World Economic Forum estimated the global public stock market’s value to be more than $115 trillion in 2023. As of today, the market is over $130 trillion.

Therefore, Tenev believes that tokenization will steadily eat into this space, gradually expanding into multiple asset classes. Over time, he sees it becoming the backbone of the financial system.

“Eventually, it’s going to consume the entire system,” he said, stressing that the shift is not a question of if, but when.