Vlad Tenev, CEO of Robinhood said that the US crypto-friendly climate is gaining momentum. “tailwind” for the firm’s business due to the benefits stablecoins and tokenization offer compared to the traditional financial system.
In an interview on Bloomberg TV, Tenev was lauding the “innovation-friendly regime,” which would boost Robinhood’s traditional and crypto businesses and other key areas of the trading platform.
Then he added:
“It’s great to see an innovation-friendly that is coming in that believes that the US needs to be number one in business and innovation. I think that will be good not just for Robinhood but for every industry we operate in.”
24/7 liquidity
Crypto trading became essential to Robinhood’s business, representing Revenue of 358 millions dollars from transactional revenueThis is equivalent to 53 percent of the total.
Tenev, who confirmed this offer in the past, said that using stablecoins is one of the ways to allow crypto-tofiat trading to be conducted without any downtime.
Tenev says:
“Stablecoins solve that problem because it’s a 24/7 network that is running on software. I think that just shows you one of the advantages of crypto technology over the traditional financial system.”
This also includes regular trading, liquid pools and the trading of private assets that are traditionally less liquid than cash transfers. Tenev warns that the stablecoin must also accrue profits to compete with alternative methods of holding or transacting dollar.
Robinhood is introducing this idea to Global Dollar Network (USDG), an open initiative that encourages adoption of stablecoins worldwide. He said that stablecoins are not easy to use. Cash deposited at banks in high interest environments can yield 4%.
Trillion-dollar market
Tenev told investors that the tokenization of crypto is what he finds most exciting.
Tokenization involves the representation of a physical asset, in its entirety or part, on a Blockchain. This increases liquidity by allowing a live market to run without interruptions, and it speeds up settlement.
Tenev’s belief about tokenized stocks of private companies being the best for US investors was revealed when he was asked about Robinhood plans in this regard.
The author shared that:
“I think it’s ludicrous that customers are free, retail is free, to invest in a wide collection of memecoins and other alternative assets, but OpenAI, SpaceX, and other private companies that early backers have seen 100x, sometimes 1000x or more returns, are impermissible and are seen as too risky.”
The addressable market will be a trillion dollar industry if the blockchain sector gains clarity in regulatory terms, which allows the link between cryptocurrency and securities. This includes all private and publicly listed stocks.
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