Robinhood CEO says tokenizing U.S. stocks could prevent another GameStop-style crisis

Robinhood co-founder and CEO Vlad Tenev has proposed tokenizing U.S. stocks, citing the urgent need for real-time settlement of U.S. stock trades to prevent another GameStop saga. He also explained that the tokenization will attract various advantages in stock trading, including reduced costs and 24/7 trading.

Robinhood co-founder and CEO Vlad Tenev has called for the tokenization of U.S. stocks, saying it is inevitable that the U.S. will embrace it. Tenev commemorated Robinhood’s move to halt trading in GameStop and other memestocks five years ago, saying that tokenization could prevent a repeat. He blamed the poor infrastructure on slow, outdated financial operating models that could not handle unprecedented trading volume and volatility in a small number of stocks.

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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