Robinhood CEO: Tokenizing U.S. Stocks Could Prevent Another GameStop-Style Crisis
Wall Street's next revolution might just be digital—and it's coming from an unlikely source.
Robinhood's chief executive dropped a bombshell proposal that could reshape traditional finance: tokenize every U.S. stock on the blockchain. No more settlement delays, no more opaque ownership chains—just instant, transparent trading that cuts out the middlemen who profit from market friction.
How Tokenization Bypasses the Old Guard
Traditional stock trading relies on a tangled web of clearinghouses, brokers, and custodians—a system that creaks under pressure. Remember the GameStop frenzy? That was a stress test the old infrastructure barely passed. Tokenization replaces that legacy plumbing with smart contracts that execute trades and transfer ownership in seconds, not days.
It turns stocks into programmable assets. Want to borrow against your Tesla shares? A decentralized lending protocol handles it automatically. Need to prove you own Apple stock? The blockchain ledger doesn't lie—unlike some brokerage statements after a margin call.
The Liquidity Lifeline
Market makers and short sellers thrive on volatility and settlement delays. Tokenization flips that script by providing real-time settlement and transparent short interest data. No more guessing how many synthetic shares are floating around—the blockchain ledger shows every position, in real time.
Suddenly, the squeeze plays that made GameStop legendary become mathematically impossible. The market regulates itself through transparency, not after-the-fact SEC investigations that arrive long after the hedge funds have cashed out.
The Cynical Take
Of course, Wall Street's old guard will fight this tooth and nail—they've built fortunes on the three-day settlement float and opaque reporting. Tokenization threatens their favorite revenue streams: the hidden fees, the payment for order flow, the lucrative arbitrage opportunities that exist only because the current system moves at glacial speed.
But here's the reality: the technology already exists. The question isn't whether stocks will tokenize, but when—and whether traditional finance will lead the charge or get dragged kicking and screaming into the transparent future they've spent decades avoiding.
The GameStop saga exposed Wall Street's fragile foundations. Tokenization doesn't just patch the cracks—it builds an entirely new foundation where everyone sees the same numbers at the same time. Unless, of course, you prefer your markets with a side of mystery and a dash of systemic risk.
Robinhood CEO Vlad Tenev says tokenization will change trading activities
During the GameStop crisis, brokerage firms like Robinhood underwent massive collateral demands due to the existing two-day trade settlement system. In a detailed article published on X, Tenev said the company was forced to raise $3 billion in a short time to combat the situation as retail traders flocked in to purchase GameStop.
Regulators later shortened the cycle to a one-day settlement system, but the executive believes this duration is still not enough. Tenev said tokenization will enable real-time settlement in stock trading and reduce risk and pressure on clearinghouses and brokerage firms, as it did in 2021.
The official explained that tokenization will also enhance stock trading through blockchain technology, which typically offers various advantages. According to Tenev, stock trading will become cheaper and available 24/7 once tokenization of financial markets goes mainstream.
The executive explained that Robinhood has already rolled out the concept in Europe by tokenizing more than 2,000 U.S.-listed stocks. The listings have given European traders and investors exposure to U.S. equities and access to accompanying dividends. Tenev said the brokerage firm plans to unlock 24/7 trading and DeFi access in the coming months, allowing investors to self-custody their stock tokens and potentially access secondary services such as lending and staking.
Vlad Tenev explained that the advantages of tokenizing tradable assets, such as stocks, are becoming more evident, and that he believes“it is inevitable that the US embraces this technology.” He also highlighted that major U.S. exchanges and clearinghouses have recently announced plans to convert equities into tokens that live on a blockchain.
The Robinhood CEO pointed out that regulatory clarity is the backbone of these developments and will need to fall into place for mainstream adoption of tokenized assets. He acknowledged the TRUMP administration’s efforts to promote regulatory clarity for cryptocurrencies and blockchain innovation. He also mentioned Congress’s current efforts to draft the CLARITY Act as a vital component of crypto legislation, mandating that the US financial watchdog (SEC) continue to embrace technological reforms in the decentralized ecosystem.
Experts project continued tokenization growth in 2026
Vlad Tenev is not the only executive calling for increased tokenization of financial markets. On January 20, Cryptopolitan reported that Coinbase CEO Brian Armstrong advocated for tokenization to expand global markets and revolutionize trading activities. The executive said that tokenization will level the financial playing field by giving global users access to the world’s most lucrative markets regardless of their income or location.
Token Terminal, an on-chain data platform, also reported that Tokenization is now the fastest-growing sector in the crypto ecosystem and is rapidly evolving. The value of real-world assets on-chain in various networks has surged by 232% in 2025, reaching $18.6 billion, up from just $5.6 billion in 2024.
A recent report titled ‘2026 Thematic Outlook’ from BlackRock, the world’s largest asset management firm, revealed that tokenization was among the major themes that will shape the investment landscape in 2026 due to growing interest from institutional investors. The report acknowledged ethereum as a dominant platform that has facilitated the growth and development of the tokenization sector. The asset management firm said the Ethereum ecosystem will benefit as tokenization continues to expand.
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