Robinhood CEO Highlights Tokenization as a Game-Changer for Private Equity Access
The ability to create and launch a cryptocurrency in just minutes demonstrates how seamlessly blockchain technology could be used to tokenize shares in major private firms like OpenAI and SpaceX, according to Robinhood CEO Vladimir Tenev.
“You can sit down with some software, create a coin, and have it trading within five minutes,” Tenev said in a Feb. 25 interview with Bloomberg. “That’s a scary thing, but it’s also incredibly powerful when you contrast it with the complexity of the IPO process.“
Tenev believes tokenization holds immense potential, particularly for increasing market accessibility and liquidity. Blockchain technology, he noted, could enable more efficient listing of assets while tapping into global capital pools.
A key frustration for retail investors, according to Tenev, is their inability to invest in the ongoing artificial intelligence revolution.
“What options do they have? Nvidia, and to some extent Tesla—but no OpenAI, no Anthropic,” he remarked.
Tenev also pointed out that the Trump administration’s push to establish the U.S. as a global leader in both cryptocurrency and AI could benefit companies like Robinhood, enabling them to innovate at the intersection of these two transformative technologies.
However, bringing real-world assets on-chain would necessitate clear accreditation and regulatory frameworks to determine how crypto-based securities can be listed on trading platforms.
Tenev emphasized that disclosure requirements would also be essential. Investors, he argued, should be able to distinguish between well-established companies with audited financials, such as SpaceX, and early-stage ventures with higher risk.
His comments come amid Robinhood’s renewed focus on cryptocurrency, following the U.S. Securities and Exchange Commission (SEC) closing its investigation into Robinhood Crypto on Feb. 24.
In May, the SEC—under then-Chair Gary Gensler—issued a Wells notice to Robinhood Crypto, signaling potential enforcement action over alleged securities violations.
Despite past regulatory hurdles, Robinhood’s crypto business has surged. The company reported a record $1 billion in revenue for the fourth quarter of last year, with $358 million generated from cryptocurrency transactions alone.
Crypto trading volumes skyrocketed by over 450% year-over-year, reaching $71 billion, while total crypto assets under custody grew 75% quarter-over-quarter to $35 million.
Leave a comment