Robinhood CEO Vlad Teev is of the opinion that blockchain technology will ultimately support trade in shares, with the argument that the infrastructure of crypto financial markets could make more cost-efficient and resilient.
Tenev made the explanation during a Hireside chat, where he outlined how integrating shares with blockchain networks could remove many inefficiencies in traditional trading systems, so that assets could act seamlessly around seamlessly.
Crypto rails on stock markets
Tenev pointed to the 24/7 character of crypto -trade, lower settlement times and reduced transaction costs as important benefits compared to older financial infrastructure. He contrasted this with the stock market, where transactions are limited to specific hours and the settlement can take days.
Tenev said:
“There is no reason why investors must have the freedom at any time to trade meme coins, but dealing with barriers when they try to invest in companies such as SpaceX or OpenAi.”
He added that the same blockchain technology that is used for cryptocurrencies can be applied to shares, bonds and other assets.
While some traditional financial institutions have started testing blockchain for cleaning up and settlement processes, regulatory uncertainty continues to hinder the great acceptance.
According to Teev, the securities laws in the US have largely limited the integration of crypto with Real-World financial assets, which limits its full potential.
Beyond regulatory obstacles
Tenev argued that the slow acceptance of crypto infrastructure in traditional markets is not due to technological limitations, but rather a lack of regulatory clarity.
He explained:
“We are not allowed to connect crypto with productive assets in the US because of securities laws, but that is something that we have to tackle.”
However, he acknowledged that the landscape is starting to shift under the current administration and expressed optimism about the overcoming the obstacles that the industry has suppressed so far.
Tenev is planned to attend the Crypto top of the White House later this week, where he is planning to argue for clearer regulations that can enable blockchain technology to support the regular financial markets.
Robinhood, which has expanded its crypto offer despite the research of the regulations, positions itself as a leader in the American ecosystem of digital assets. The company has steadily grown its crypto services in addition to its stock trading platform, which exposes retail investors exposure to both markets.
The comments from TENEV come as major financial players, including asset managers and banks, investigate ways to integrate blockchain into their activities, with some already experimenting with tokenized effects and digital assets settings.
If regulators offer a clearer framework, Teev believes that crypto technology could serve as the backbone of the financial system of the next generation, so that the efficiency and accessibility of blockchain for stock trade and then is brought.
