The CEO of trading giant Robinhood reportedly believes that tokenization is the future of financial services.
In a new Fortune report, Robinhood head Vlad Tenev says that the “next transition” for financial services is tokenization.
“You don’t have to squint too hard to imagine a world where stocks are on blockchains.”
According to Fortune, several big name financial giants are already exploring tokenization, when assets like dollars and stocks are issued on blockchains, including BlackRock and Goldman Sachs.
Tenev believes tokenization has the potential to cut out costly intermediaries for financial actions like trade settlements.
Tenev also talks about Robinhood’s $200 million acquisition in June of crypto exchange Bitstamp.
Says Tenev,
“The cost of running a crypto business is an order of magnitude lower. There’s just an obvious technology advantage.”
Earlier this month, Bloomberg reported that Robinhood is looking at offering crypto futures trading in the US and European markets, but hasn’t laid out a timeline to do so.
Tenev also says he envisions Robinhood as a platform where people store their wealth, similar to how they currently use banks.
The platform has advanced in this direction by branching out to retirement accounts, a credit card, and high-yield cash accounts.
“The aspiration is for people like me to have all their wealth in Robinhood.”
Generated Image: Midjourney