To pick the benefits of the tokenization, accredited investor rules must be renewed: Robinhood Crypto GM

To take advantage of one of one of tokenizationThe actual benefits of investors, the requirements for investor accreditation must be renewed to power daily investors with more freedom, according to Johann Kerbrat, senior vice president and general manager of Robinhood Crypto.

In a recent interview with DecryptKerbrat said that block chains could be used one day to help startup founders to attract capital in a transparent way that helps them retain control. According to the current rules in the US, 90% of the population could not participate – for example, because, for example, they do not earn more than $ 200,000 a year.

As a company goes from a passion project to listed company, daring capitalists and private equity companies help to raise money along the way. When it comes to the list on a trade show, investment banks also play an important role, they endorse the offer, and as Kerbrat described it, with a “huge bank costs”.

According to Kerbrat, a founder threatens, among other things, to lose control through share dilution, because intermediaries expand their services on the path of the company to a final IPO. Moreover, locations such as Nasdaq often charge their own exchange rate costs, he added.

“These steps are only intermediaries who take over the company and do not necessarily create value for your customer, for your employee base or something similar,” he said. “With tokenization we could bring a new world to raise money, where you could launch a new offer for your startup instead of launching a new coin and raising funds on the chain.”

With a regulatory background that supports more innovation, Kerbrat said that Robinhood is well positioned to help founders of Startup in circumventing intermediaries, which uses the “huge retail platform” in addition to its connections on the institutional side with market makers.

Instead of base the accreditation of an investor on factors such as their salary, Kerbrat argued that “the control point should be education” and whether investors are aware that investments are running at an early stage.

In April, Kerbrat served a letter To the Securities and Exchange Commission that recommends that there must be knowledge -based tests and self -certification components for accreditation.

“A new regulatory approach is needed to flourish tokenization, and that system must be designed at the federal level to offer consistency to the market,” the letter said.

Whether it concerns shares, bonds or real estate, tokenization can refer to any active that is represented with a token on the chain. Last month Exchange Kraken, Crypto Exchange Kraken said that users in Europe would start with the ability to trade US shares using Solana.

Proponents of Tokenization, including BlackRock CEO Larry Fink, have focused on benefits that go beyond the potential democratization of markets. When he Supported tokenization in 2022His focus was on a greater market efficiency and settlement that is almost immediately.

“I think there are many benefits, but at the moment what is blocking us from this world [outdated] Rules, “Kerbrat said, understating that technology is not what tokenization stops.

Published by James Rubin