Robinhood CEO: Tokenized Stocks May Become Inevitable, Expected to Reduce Trading Freezes on Traditional Exchanges

Odaily News Robinhood CEO Vlad Tenev stated that tokenized stocks are expected to alleviate or even avoid the frequent trading freeze issues seen in traditional exchanges, and their implementation in the U.S. market is "almost inevitable." In a post on the X platform, Tenev recalled that the 2021 trading freeze of meme stocks like GameStop was one of the most significant systemic failures in the stock market in recent years, rooted in the lengthy stock settlement cycles and complex clearing rules at the time.

Tenev pointed out that although the U.S. stock settlement cycle has been shortened from two days to one day, settlements can still extend to three or four days during Fridays or long holiday periods, meaning systemic risks persist. He believes that putting stocks on-chain in tokenized form could leverage blockchain for real-time settlement, thereby reducing risk exposure for clearinghouses and brokerages and easing market pressure during periods of high volatility. Tenev also emphasized that with the U.S. SEC exploring tokenized securities and Congress advancing the "CLARITY Act," now is a critical window to push for the establishment of a regulatory framework for stock tokenization. (Cointelegraph)