How exactly might the future of finance unfold?
If you ask Robinhood CEO Vlad Tenev, it’s less of a gentle evolution and more of a high-speed collision course.
Tenev describes tokenization as “a freight train barreling toward the heart of traditional finance” that will ultimately “eat the entire financial system.”
Not exactly subtle imagery from the trading app executive.
Robinhood isn’t just talking—they’re already testing these waters by launching tokenized stocks and ETFs across Europe.
The program offers EU customers access to over 200 US equities, complete with dividend support and extended trading hours.
Think of it as taking the “stock market” and turning it into something more like a 24-hour convenience store (well, almost—it’s 24/5 trading).
The company has also ventured into tokenizing private equity, offering shares in non-public companies like OpenAI—a move that raised eyebrows and prompted OpenAI to call the initiative “unauthorized.”
It’s a bit like showing up to someone’s party without an invitation, but with really nice snacks.
Real estate tokenization appears next on Robinhood’s agenda.
Tenev claims converting property into tradable tokens is “mechanically no different” from tokenizing companies.
Imagine slicing a skyscraper into digital pieces small enough for anyone to buy—like getting partial ownership of the Empire State Building for the price of a decent dinner.
The tokenization revolution faces more legal than technical obstacles, particularly in the US, which Tenev suggests lags behind Europe in digital asset regulation.
He compares America’s slower adoption to its transportation infrastructure: while Europe and Asia zoom along on high-speed trains, the US chugs forward on legacy systems that work “well enough.”
This slower pace isn’t necessarily urgent to address, as Tenev dismisses the need for immediate 24/7 trading rules in the US market.
The company is actively developing a Layer 2 blockchain built on Arbitrum specifically optimized for tokenized real-world assets that will support future expansion of their offerings.
This approach aligns with broader industry efforts to leverage Layer 2 solutions that address blockchain’s scalability challenges by processing transactions off the main chain.
Ultimately, Tenev envisions a future where the distinction between traditional finance and crypto dissolves completely, with virtually all assets existing on-chain in tokenized form—potentially democratizing financial access globally, assuming regulators eventually climb aboard the tokenization train.
