- Robinhood CEO Vlad Tenev says blockchain-based, tokenized shares could prevent trading halts like those in January 2021.
- Tenev blamed slow, outdated settlement infrastructure for the 2021 freeze and called for faster, real-time settlement.
- Regulators shortened settlement to T+1, but Tenev argues it remains insufficient for modern markets.
- Robinhood has minted nearly 2,000 tokenized U.S. stocks and ETFs, totaling about $17 million, lagging leaders xStocks and Ondo Global Markets.
- Tenev urged lawmakers to pass the CLARITY Act and said Robinhood plans to add 24/7 trading, self-custody, lending, and staking for tokenized shares.
Five years after the January 2021 trading freeze, Robinhood CEO Vlad Tenev called for moving stocks onto blockchains to avoid similar disruptions. In a post, he said outdated settlement systems led to massive collateral demands, trading restrictions, and widespread customer anger. He urged faster settlement and new rules to support tokenized equities.
During the 2021 events, brokers faced huge collateral requirements under the two-day settlement system and Robinhood raised over $3 billion in emergency funding to keep operating. Regulators later cut the settlement cycle to T+1, but Tenev said that change still leaves too much time for risk to build. He wrote that, "In a world of 24-hour news cycles and real-time market reactions, T+1 is still far too long."
Tenev described tokenization as a way to shorten or eliminate settlement periods by placing stock ownership on a blockchain. He wrote, "Tokenization refers to the process of converting an asset, like a stock, into a token that lives on a blockchain." That, he said, would reduce pressure on clearinghouses and brokers and allow customers to trade freely.
According to data cited in the post, Robinhood has minted nearly 2,000 tokenized U.S. stocks and ETFs, totaling just under $17 million, according to RWA.xyz. Those totals remain well below offerings from firms such as xStocks and Ondo Global Markets, each of which exceeds $500 million in tokenized assets.
Tenev said the firm plans to add features like 24/7 trading, self-custody, lending, and staking in coming months. He also urged lawmakers to approve the CLARITY Act, calling for regulatory rules to enable real-time settlement and broader use of tokenized equities, writing, "Let’s seize the moment."
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