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Robinhood CEO presses U.S. rules for tokenized stock trading
Robinhood’s stock tokens track shares and dividends but do not grant direct ownership, a key issue as Tenev calls for a U.S. regulatory framework.
Robinhood CEO Vlad Tenev is urging U.S. regulators to create a clear framework for tokenized stocks as the company expands its products abroad, arguing the United States risks falling behind other markets on the next wave of trading and settlement infrastructure, according to CoinDesk. Tenev says tokenized equities could deliver real-time settlement and potentially around-the-clock trading, and he points to the 2021 GameStop episode as an example of how strain on existing settlement infrastructure can translate into restrictions during periods of market stress. Robinhood’s Stock Tokens are backed 1:1 by underlying shares, but holders do not directly own the tracked shares, leaving open questions about shareholder rights and how existing U.S. securities rules should apply to the structure, CoinDesk reports. Robinhood has already made tokenized U.S. stocks available outside the country, giving users in more than 120 countries exposure to more than 190 U.S. stocks, including dividends, while Tenev continues pressing for U.S. rulemaking to support the approach.