Robinhood CEO Vlad Tenev is pressing U.S. regulators to create a framework for tokenized stocks, warning that America risks falling behind overseas markets in the race to rebuild financial-market infrastructure on blockchain technology.

Market Context

The push comes as Robinhood has already launched tokenized versions of more than 190 U.S. stocks for users in over 120 countries outside the United States. The products allow international investors to gain economic exposure to American equities, including dividends, through blockchain-based tokens backed 1:1 by underlying shares.

Analysis

Tenev frames the regulatory gap as a competitive disadvantage, arguing that tokenized assets can trade around the clock, settle in real time and move between compatible wallets without relying on traditional broker transfer systems. His latest comments build on predictions he made last year when he called tokenization a "freight train" capable of reshaping traditional finance.

The CEO pointed to the 2021 GameStop trading frenzy as evidence for why legacy settlement infrastructure needs replacement. During that episode, Robinhood restricted purchases of some stocks after clearinghouse collateral demands surged. Tenev argued that real-time blockchain settlement would reduce such pressure during periods of market stress.

"On the blockchain, Stock Tokens can trade, settle, and move in real time," Tenev wrote on X. "Real-time settlement means much less risk and pressure on the system, particularly in times of severe market stress."

The distinction between Robinhood's tokenized shares and direct ownership has become central to regulatory debates. While the tokens track share prices and dividends, holders do not technically own the underlying securities—a gap that raises questions about shareholder rights under U.S. securities rules.

Tenev acknowledged that focusing only on ownership structure misses the broader market-structure shift. He argued that tokenization could address three longstanding frictions: settlement delays, limited trading hours and cumbersome asset transfers between financial firms.

U.S. stock settlement has already moved from two business days to one, known as T+1. Tenev argues tokenization could further compress that timeline, lowering the collateral requirements that arise between trade execution and final settlement.

Key Numbers

- More than 190 U.S. stocks available through Robinhood's international tokenized stock product

- Over 120 countries where users can access Robinhood Stock Tokens

- Tokenized shares are backed 1:1 by underlying stocks, though holders do not receive direct ownership

- Robinhood currently offers 24/5 stock trading in the U.S.

What to Watch

Whether U.S. regulators respond to Tenev's call for a tokenized securities framework. Securities laws currently set requirements around trading, custody, clearing and shareholder rights that apply regardless of whether an asset sits on a blockchain. Tenev has said he expects future tokenized equities to include traditional shareholder rights if regulations permit it. He has also discussed extending similar structures to private companies and real estate, where trading access is more limited.

"It would be a strange outcome if the rest of the world could build the future of ownership around American assets while Americans themselves were left behind," Tenev concluded.