Robinhood CEO Advocates Tokenization to Prevent Trading Halts Like GameStop 2021
Robinhood CEO Vlad Tenev has reignited debates about equity market infrastructure by proposing tokenized stocks as the solution to trading halts reminiscent of the 2021 GameStop saga. In a recent post on X, Tenev characterized the incident as a systemic failure rooted in outdated settlement mechanics, not broker misconduct.
The 2021 trading restrictions—which sparked outrage among retail investors—were triggered by clearinghouse risk-management rules tied to the T+2 settlement cycle. As volatility spiked, brokers faced untenable collateral demands, forcing activity curbs. Tokenization, Tenev argues, WOULD enable real-time settlement, eliminating such friction points.
Five years after the meme-stock frenzy, the call for blockchain-based equity settlement gains urgency. Market participants now weigh whether decentralized infrastructure could prevent history from repeating during periods of extreme volatility.
