Robinhood CEO Tenev Says Tokenization Can Break Down Financial Borders, Open US Assets to Global Investors

Vlad Tenev, Robinhood's co-founder and chief executive officer, said tokenization should open high-quality US financial assets to investors around the world.

In a post on X on September 4, Tenev wrote that everyone should be able to access high-quality financial assets regardless of where they live. He described tokenization as a technology that can extend the advantages of US capital markets to the rest of the world. Tokenization refers to the issuance of blockchain-based tokens representing rights to traditional assets such as stocks and bonds.

Tenev also pointed to the limits of existing financial infrastructure. Traditional markets are built around fixed trading hours, closed networks and multiple layers of intermediaries. That makes it difficult to support 24-hour trading, combine assets, automate transactions through smart contracts and allow individuals to hold assets directly. Investor demands have changed faster than financial infrastructure has evolved, he wrote, adding that Robinhood is trying to change that.

He also underscored the growth potential of the tokenization market. While the market remains at an early stage compared with the broader global financial system, use cases are expanding quickly as founders, liquidity providers, investors and blockchain infrastructure companies join the ecosystem. Once tokenized assets reach sufficient liquidity, investors worldwide will be able to trade the same assets without being constrained by the operating hours of exchanges in individual countries.

Still, Tenev said it would take time for traditional financial firms and regulators to embrace tokenization. He cited unresolved issues including legal rights tied to assets, investor protection, country-by-country securities rules and risks that can arise in self-custody. The market is still in its early stages and much remains to be built, he wrote. Bringing in participation from traditional finance will take time and effort, but it is a change worth pursuing.