Robinhood CEO Vlad Tenev said the crypto-friendly environment gaining shape in the US would be a “tailwind” for the firm’s business due to the benefits stablecoins and tokenization offer compared to the traditional financial system.

During an interview with Bloomberg TV, Tenev praised the “innovation-friendly regime,” which would boost Robinhood’s traditional and crypto businesses and other key areas of the trading platform.

He added:

“It’s great to see an innovation-friendly that is coming in that believes that the US needs to be number one in business and innovation. I think that will be good not just for Robinhood but for every industry we operate in.”

24/7 liquidity

Crypto trading became essential to Robinhood’s business, representing $358 million in transaction-based revenue, equivalent to 53% of the total.

Regarding this offer, Tenev confirmed that one way to facilitate crypto-to-fiat on and off-ramping is by using stablecoins, as this allows trading to continue without downtime. 

Tenev said:

“Stablecoins solve that problem because it’s a 24/7 network that is running on software. I think that just shows you one of the advantages of crypto technology over the traditional financial system.”

He added that this also translates to regular trading, liquidity pools, and trading of traditionally illiquid private assets other than money transfers. However, Tenev also warned that stablecoins must accrue yield to compete with other methods of holding and transacting dollars.

Robinhood wants to introduce this idea to the Global Dollar Network, an open initiative anchored by the Global Dollar (USDG) that promotes stablecoin adoption globally. He explained that cash deposited in banks can accrue a 4% yield in a high-interest environment, which is not simple to experience with stablecoins.

Trillion-dollar market

Speaking to investors on Feb. 12, Tenev revealed that tokenization excites him the most about crypto and its underlying technology.

Tokenization is the process of representing a real-world asset on a blockchain, either in whole or in part. It enhances liquidity with a market live without interruptions and speeds up settlement times.

When questioned about Robinhood’s plans for tokenization in the near term, Tenev revealed his belief that tokenized private company stocks resonate best with US investors.

He shared:

“I think it’s ludicrous that customers are free, retail is free, to invest in a wide collection of memecoins and other alternative assets, but OpenAI, SpaceX, and other private companies that early backers have seen 100x, sometimes 1000x or more returns, are impermissible and are seen as too risky.”

If the blockchain industry gains regulatory clarity, allowing the connection between crypto and securities, the addressable sector will become a trillion-dollar market composed of every private and public listed equity.

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