Robinhood CEO Calls for Tokenized Stock Framework Amid Global 'Tokenization Supercycle'

Rohan Hood CEO Vlad Tenev has called on US regulators to establish a framework for tokenized stocks, which are blockchain-based versions of ordinary shares. In a post on X, he argued that the financial system is in the early stages of a global 'tokenization supercycle' and that America risks watching it happen from overseas.

Tenev's pitch is that tokenization would fix how the market settles and moves shares, allowing trades to clear in real-time instead of the next business day. This would reduce collateral demands between trade and settlement, a pressure point that forced Robinhood to restrict buying during the 2021 GameStop frenzy.

Tokenization could also bring around-the-clock trading and faster transfers between brokerages. The company already offers tokenized U.S. stocks to users in more than 120 countries, giving them economic exposure to over 190 U.S. names with dividends included.