In a recent interview, Robinhood CEO Vlad Tenev made a bold prediction about the future of finance: the widespread adoption of tokenized stocks is not just possible, but “inevitable.” This shift, he argues, could solve one of the most frustrating problems for modern investors—trading freezes and settlement delays.
The Problem with “T+1”
Today’s stock market operates on a settlement cycle known as “T+1,” meaning a trade is finalized one business day after the transaction. While this is a significant improvement over the old “T+2” system, Tenev believes it’s still “far too long.” This delay creates a window of risk and requires massive amounts of capital to be locked up in the settlement process. More viscerally for everyday users, it’s a key reason platforms like Robinhood have historically halted trading on volatile stocks during periods of extreme market frenzy—a move that has drawn significant criticism.
How Tokenization Offers a Solution
Tokenization involves representing a real-world asset, like a share of Apple or Tesla stock, as a digital token on a blockchain. This isn’t about creating a synthetic derivative; it’s about digitizing the actual ownership right.
Tenev suggests that by moving stock ownership onto a blockchain ledger, settlements could occur in near real-time—potentially in seconds or minutes instead of days. This instant settlement would drastically reduce counterparty risk and the capital requirements for brokers and clearinghouses. In theory, it would also eliminate the technical need for trading halts due to settlement liquidity crunches, creating a more resilient and fluid market.
The Path to “Inevitable” Adoption
For tokenized stocks to become mainstream, significant regulatory and infrastructural hurdles must be cleared. Regulators like the SEC would need to approve these digital securities, and major financial institutions would have to build the bridges between traditional markets and blockchain networks. However, the momentum is building. We’re already seeing tokenized treasury bonds and real estate gaining traction among institutional investors, proving the model for real-world assets (RWAs).
The driving force, as Tenev sees it, is efficiency. The financial industry is relentlessly competitive, and any technology that can reduce cost, risk, and friction while improving speed will eventually be adopted. The success of crypto-native markets, which settle trades 24/7, sets a powerful precedent.
A More Accessible and Efficient Future
The implications extend beyond just preventing another “meme stock” trading freeze. Tokenization could democratize access to a wider range of assets, enable fractional ownership of expensive stocks with greater ease, and create a truly global, 24/7 trading environment for traditional equities. It represents a fundamental upgrade to the plumbing of the global financial system.
While the timeline remains uncertain, the vision from one of retail investing’s most prominent leaders is clear. The stock market of the future may not run on legacy settlement systems, but on the transparent, programmable, and instantaneous rails of blockchain technology.
