Robinhood CEO Declares Tokenization the Ultimate Game-Changer in Finance

Wall Street's latest buzzword just got a crypto makeover—and Robinhood's boss is all-in. Tokenization isn't just coming for finance; it's rewriting the rules.

Why TradFi Should Sweat

Forget IPOs and bond markets. Fractionalized ownership of everything from real estate to rare art is slicing through legacy systems like a hot knife. The CEO's bet? Traditional finance won't know what hit it.

The Ironic Twist

Same platform that gamified stock trading now wants to democratize assets via blockchain. Cue eye-rolls from bankers still charging $25 wire fees.

Prediction: If tokenization delivers half what boosters promise, Wall Street's middlemen might need—gasp—actual innovation to keep up.

TLDR

• Robinhood has launched tokenized trading for over 200 U.S. stocks and ETFs in the EU.
• CEO Vladimir Tenev said tokenization is the most important innovation in financial markets in the last decade.
• Robinhood uses blockchain to create digital tokens that represent real assets held by the company or a licensed U.S. broker.
• The platform also offers tokenized shares of private companies such as OpenAI and SpaceX.
• Robinhood ensures that token holders receive shareholder benefits, including dividend payouts.

Robinhood has launched its tokenization platform in the EU, offering over 200 tokenized U.S. stocks and ETFs to retail investors. CEO Vladimir Tenev described this MOVE as a major advancement for global financial markets. He emphasized that tokenization could provide greater access, transparency, and flexibility for everyday investors.

The company now uses blockchain to create tokenized assets that represent real financial products, including public and private equities. These tokens are generated when investors purchase shares and are destroyed once the shares are sold. Robinhood either holds the asset itself or collaborates with a licensed U.S. broker to secure the underlying investment.

This system enables investors to gain digital exposure to real assets, which were traditionally reserved for institutions or accredited individuals. The model differs slightly between public stocks and private shares due to valuation and regulatory processes. However, the company maintains that every token represents legitimate exposure to actual holdings.

Robinhood Expands Access to Private Shares Through Tokenization

Robinhood has also introduced tokenized shares in private companies such as SpaceX and OpenAI through promotional offerings. Tenev stated that these tokens replicate access that high-net-worth individuals usually receive through secondary negotiated trades. He explained that this creates more opportunities for retail investors in typically exclusive markets.

The valuation of these private assets follows common practices in secondary markets, where prices reflect agreed-upon transactions between accredited parties. Robinhood relies on this standard to price and distribute tokenized versions of private shares, which allows the platform to maintain consistency with traditional market mechanisms.

Robinhood has ensured that customers receive dividend rights and ownership benefits, which early tokenization platforms often failed to deliver. The system is designed to distribute entitlements such as dividends to token holders when applicable. According to the company, these processes align with traditional shareholder rights while using blockchain infrastructure.

Robinhood Leverages Regulatory Clarity in the EU, Builds Its Own Chain

Robinhood has utilized the EU’s regulatory frameworks, including MiCA and MiFID, to operate its tokenized asset platform legally. Tenev highlighted that under European rules, the tokens are classified as derivatives. This regulatory clarity allowed the company to officially launch tokenized trading in Europe on June 30, 2025.

On the same day, Kraken introduced similar services using the Solana blockchain, intensifying competition in the digital securities space. In contrast, Robinhood revealed plans to support its tokenization project by building an Ethereum-compatible blockchain called Robinhood Chain. This new network will use the Arbitrum Orbit framework to enhance performance and scalability.

Despite regulatory scrutiny from bodies such as the Bank of Lithuania, Robinhood continues to defend the structure and validity of its offerings. Concerns from OpenAI about token authenticity triggered a review, but Robinhood remains engaged with regulators. The company believes the long-term opportunity outweighs short-term challenges.

In the U.S., Robinhood has submitted a formal proposal to the SEC outlining a federal framework for asset tokenization. Tenev argued that the current SEC authority is sufficient to approve tokenized products without requiring new legislation. He stated that the U.S. must act quickly to remain competitive in financial innovation.

Robinhood has joined ongoing tokenization roundtables with the SEC and industry stakeholders to advance regulatory progress. Tenev emphasized that U.S. investors lack access to 24/7 trading, which tokenized platforms could resolve. He also pointed out that legacy systems delay modernization, hindering broader market efficiency.