3 posts tagged with "Tokenization"

Tokenized stocks have shifted from an experimental idea to a live market in 2025. Blue-chip equities, popular ETFs, and even shares of private companies are now mirrored on blockchains and traded around the clock. This guide breaks down how the instruments work, who is listing them, and where regulation is heading as Wall Street and Web3 converge.

What Are Tokenized Stocks and How Do They Work?​

Tokenized stocks are blockchain tokens that track the economic value of real-world equities. Each token is backed by a share (or fraction of a share) held by a licensed custodian, so a tokenized Apple stock moves in lockstep with Apple Inc. shares on Nasdaq. Because they are issued as standard tokens (such as ERC-20 on Ethereum or SPL on Solana), they plug directly into crypto exchanges, wallets, and smart contracts. Issuers rely on oracles like Chainlink for price feeds and on-chain proof-of-reserve attestations so that investors can verify every token is backed 1:1.

Legally, most offerings operate like depository receipts or derivatives: token holders receive price exposure and dividends "where permitted," but they typically do not gain shareholder voting rights. That design keeps issuers compliant with securities rules in Switzerland, the European Union, and other supportive jurisdictions. In contrast, the United States still treats tokenized shares as regulated securities, forcing platforms either to exclude U.S. retail investors or to obtain full broker-dealer approvals.

The 2025 Token Menu: From FAANG to Private Unicorns​

Availability has surged. Backed Finance alone listed more than 60 U.S. stocks and ETFs in mid-2025, covering names like Apple (AAPLX), Tesla (TSLAX), NVIDIA (NVDAX), Alphabet (GOOGLX), Coinbase (COINX), and S&P 500 trackers (SPYX). By August 2025, SPYX led the market with roughly $10 million in circulating supply, while TSLAX and CRCLX (Circle’s equity) followed in the mid-single-digit millions.

Issuers are also experimenting beyond public names. Robinhood’s EU crypto arm rolled out 200+ tokenized equities, including private companies such as OpenAI and SpaceX. Gemini’s first listing with Dinari was MicroStrategy (MSTRX), appealing to investors seeking indirect Bitcoin exposure. Tokens tied to sector ETFs, U.S. Treasury bond funds, and crypto-native companies (like DeFi Development Corp’s DFDVX) underline the widening scope.

Where Can You Trade Tokenized Stocks?​

Regulated and Licensed Venues​

• Robinhood (EU) issues tokens on Arbitrum and lets verified European users trade more than 200 U.S. stocks and ETFs nearly 24/5. The pilot is commission-free and focuses on accessibility while keeping assets custodied inside the app for now.
• Gemini (EU) x Dinari launched on Arbitrum with MicroStrategy and plans to expand to other Layer-2s such as Base. Customers can withdraw dShares to self-custody wallets, marrying compliance (FINRA-registered transfer agent, Malta MiFID license) with on-chain utility.
• eToro is preparing ERC-20 versions of its top 100 U.S. listings. The roadmap includes two-way bridges so clients can withdraw tokens to DeFi or deposit them back for settlement as traditional shares, pending regulatory approvals.
• Swarm Markets (Germany) combines BaFin oversight with permissioned DeFi. KYC’d users access Polygon-based tokens representing Apple, Tesla, and even Treasury ETFs, trading through AMM-style liquidity while staying inside a regulated perimeter.

Global Crypto Exchanges​

• Kraken, Bybit, KuCoin, and Bitget list Backed Finance’s xStocks. These ERC-20 tokens are bridged to Solana for low-latency trading against USDT. Fees mirror spot crypto (≈0.1–0.26%), and several exchanges already enable withdrawals to on-chain wallets for use in DeFi.
• Liquidity is growing quickly: within the first month of launch, xStocks recorded more than $300 million in cumulative volume across CeFi and Solana DEX integrations. Still, spreads widen when U.S. markets close because market makers have limited hedging options after hours.

DeFi and Self-Custody​

Once withdrawn, tokenized stocks can circulate on public chains. Holders can swap them on Solana’s Jupiter aggregator, seed liquidity pools, or post them as collateral in emerging lending markets. Liquidity is thinner than on centralized venues, and issuers caution that redemption may depend on complying with geographic restrictions. Synthetic stock protocols from the early 2020s have largely faded, giving way to asset-backed tokens with transparent custody.

Platform Comparison Snapshot​

Platform	Status & Access	Notable Listings	Blockchain	Fees & Features
Kraken (CeFi)	Live for non-U.S. users with KYC	~60 U.S. equities & ETFs via xStocks	ERC-20 bridged to Solana	Standard spot fees (~0.1–0.26%), 24/5 trading, withdrawals rolling out
Bybit (CeFi)	Live for non-U.S. users with KYC	Same xStocks roster as Kraken	ERC-20 bridged to Solana	~0.1% fees, on-chain transfers supported
Robinhood (Broker, EU)	Licensed in Lithuania, EU residents only	200+ U.S. stocks, ETFs, plus private firms	Arbitrum	Commission-free, app-native experience, custodial during pilot
Gemini (CeFi)	Available in 30+ EU countries	Starting with MicroStrategy, expanding roster	Arbitrum (expanding to Base)	Exchange fees (~0.2%+), on-chain withdrawals, FINRA transfer agent
eToro (Broker)	Launching late 2025 in EU	~100 top U.S. names planned	Ethereum mainnet	Commission-free trading, two-way token-to-share bridge in roadmap

Regulatory Momentum and Institutional Interest​

The compliance landscape is evolving fast. European frameworks like MiCA, along with Swiss and German DLT statutes, give issuers clear guidance. The World Federation of Exchanges has urged crackdowns on unregulated venues, prompting exchanges to partner with licensed custodians and publish proof-of-reserve attestations.

In the U.S., SEC officials reiterate that tokenized equities remain securities. Platforms therefore geo-block American retail users, and companies such as Coinbase are lobbying for a formal pathway. A potential breakthrough came in September 2025 when Nasdaq petitioned the SEC to list tokenized versions of its equities, envisioning a future where traditional and blockchain-native settlement coexist.

Outlook: 24/7 Markets With Guardrails​

Analysts expect real-world asset tokenization to balloon from roughly $0.6 trillion in 2025 to nearly $19 trillion by 2033, with equities playing a starring role. Tokenized stocks promise fractional access, instant settlement, and composability with DeFi—but they still depend on trustworthy custodians and regulatory clarity.

Key trends to watch:

1. Institutional adoption as exchanges and banks pilot tokenized settlement rails.
2. Liquidity incentives to keep markets tight during off-hours, potentially via automated market-making schemes and reward programs.
3. Enhanced investor protection, including insurance, transparent audits, and standardized redemption rights.
4. Interoperability between tokenized and traditional share registries, enabling investors to move seamlessly between weekend trading and Monday morning sell orders on primary exchanges.

Tokenized stocks in 2025 feel like the early days of online brokerage: still rough around the edges but racing toward mainstream relevance. For builders, they unlock novel DeFi primitives that are legally anchored to real assets. For regulators, they offer a testing ground for modernizing capital markets. And for investors, they hint at a future where Wall Street never sleeps—provided the safeguards keep up with the innovation.

Introduction​

Tokenization refers to representing ownership of an asset on a blockchain through digital tokens. These tokens can represent financial assets (equities, bonds, money‑market funds), real‑world assets (real estate, art, invoices) or even cash itself (stablecoins or deposit tokens). By moving assets onto programmable, always‑on blockchains, tokenization promises to reduce settlement friction, improve transparency and allow 24/7, global access to capital markets. During TOKEN2049 and subsequent discussions in 2024‑2025, leaders from crypto and traditional finance explored how tokenization could reshape capital markets.

Below is a deep dive into the visions and predictions of key participants from the “Tokenization: Redefining Capital Markets” panel and related interviews: Diogo Mónica (General Partner, Haun Ventures), Cynthia Lo Bessette (Head of Digital Asset Management, Fidelity Investments), Shan Aggarwal (Chief Business Officer, Coinbase), Alex Thorn (Head of Research, Galaxy), and Arjun Sethi (Co‑CEO, Kraken). The report also situates their views within broader developments such as tokenized treasury funds, stablecoins, deposit tokens and tokenized equities.

1. Diogo Mónica – General Partner, Haun Ventures​

1.1 Vision: Stablecoins Are the “Starting Gun” for Tokenization​

Diogo Mónica argues that well‑regulated stablecoins are the prerequisite for tokenizing capital markets. In an opinion piece for American Banker he wrote that stablecoins turn money into programmable digital tokens, unlocking 24/7 trading and enabling tokenization of many asset classes. Once money is on‑chain, “you open the door to tokenize everything else – equities, bonds, real estate, invoices, art”. Mónica notes that a few technologically advanced stablecoins already facilitate near‑instant, cheap cross‑border transfers; but regulatory clarity is needed to ensure wide adoption. He emphasizes that stablecoin regulations should be strict—modeled on the regulatory regime for money‑market funds—to ensure consumer protection.

1.2 Tokenization Will Revive Capital Formation and Globalize Markets​

Mónica contends that tokenization could “fix” broken capital‑formation mechanisms. Traditional IPOs are expensive and restricted to certain markets; however, issuing tokenized securities could let companies raise capital on‑chain, with global access and lower costs. Transparent, always‑open markets could allow investors worldwide to trade tokens representing equity or other assets regardless of geographic boundaries. For Mónica, the goal is not to circumvent regulation but to create new regulatory frameworks that enable on‑chain capital markets. He argues that tokenized markets could boost liquidity for traditionally illiquid assets (e.g., real estate, small‑business shares) and democratize investment opportunities. He stresses that regulators need to build consistent rules for issuing, trading and transferring tokenized securities so that investors and issuers gain confidence in on‑chain markets.

1.3 Encouraging Startups and Institutional Adoption​

As a venture capitalist at Haun Ventures, Mónica encourages startups working on infrastructure for tokenized assets. He highlights the importance of compliant digital identity and custody solutions, on‑chain governance and interoperable blockchains that can support large volumes. Mónica sees stablecoins as the first step, but he believes the next phase will be tokenized money‑market funds and on‑chain treasuries—building blocks for full‑scale capital markets.

2. Cynthia Lo Bessette – Head of Digital Asset Management, Fidelity Investments​

2.1 Tokenization Delivers Transactional Efficiency and Access​

Cynthia Lo Bessette leads Fidelity’s digital asset management business and is responsible for developing tokenization initiatives. She argues that tokenization improves settlement efficiency and broadens access to markets. In interviews about Fidelity’s planned tokenized money‑market fund, Lo Bessette stated that tokenizing assets can “drive transactional efficiencies” and improve access and allocation of capital across markets. She noted that tokenized assets could be used as non‑cash collateral to enhance capital efficiency, and said that Fidelity wants to “be an innovator… [and] leverage technology to provide better access”.

2.2 Fidelity’s Tokenized Money‑Market Fund​

In 2024, Fidelity filed with the SEC to launch the Fidelity Treasury Digital Fund, a tokenized money‑market fund on the Ethereum blockchain. The fund issues shares as ERC‑20 tokens that represent fractional interests in a pool of government treasuries. The goal is to provide 24‑hour subscription and redemption, atomic settlement and programmable compliance. Lo Bessette explained that tokenizing treasuries can improve operational infrastructure, reduce the need for intermediaries and open the fund to a wider audience, including firms seeking on‑chain collateral. By offering a tokenized version of a core money‑market instrument, Fidelity wants to attract institutions exploring on‑chain financing.

2.3 Regulatory Engagement​

Lo Bessette cautions that regulation is critical. Fidelity is working with regulators to ensure investor protections and compliance. She believes that close collaboration with the SEC and industry bodies will be necessary to gain approval for tokenized mutual funds and other regulated products. Fidelity also participates in industry initiatives such as the Tokenized Asset Coalition to develop standards for custody, disclosure and investor protection.

3. Shan Aggarwal – Chief Business Officer, Coinbase​

3.1 Expanding Beyond Crypto Trading to On‑Chain Finance​

As Coinbase’s first CBO, Shan Aggarwal is responsible for strategy and new business lines. He has articulated a vision where Coinbase becomes the “AWS of crypto infrastructure”, providing custody, staking, compliance and tokenization services for institutions and developers. In an interview (translated from Forbes), Aggarwal said he sees Coinbase’s role as supporting the on‑chain economy by building the infrastructure to tokenize real‑world assets, bridge traditional finance with Web3 and offer financial services like lending, payments and remittances. He notes that Coinbase wants to define the future of money rather than just participate in it.

3.2 Stablecoins Are the Native Payment Rail for AI Agents and Global Commerce​

Aggarwal believes stablecoins will become the native settlement layer for both humans and AI. In a 2024 interview, he said that stablecoins enable global payments without intermediaries; as AI agents proliferate in commerce, “stablecoins are the native payment rails for AI agents”. He predicts that stablecoin payments will become so embedded in commerce that consumers and machines will use them without noticing, unlocking digital commerce for billions.

Aggarwal contends that all asset classes will eventually come on‑chain. He points out that tokenizing assets such as equities, treasuries or real estate allows them to be settled instantaneously and traded globally. He acknowledges that regulatory clarity and robust infrastructure are prerequisites, but he sees an inevitable shift from legacy clearing systems to blockchains.

3.3 Building Institutional Adoption and Compliance​

Aggarwal emphasizes that institutions need secure custody, compliance services and reliable infrastructure to adopt tokenization. Coinbase has invested in Coinbase International Exchange, Base (its L2 network), and partnerships with stablecoin issuers (e.g., USDC). He suggests that as more assets become tokenized, Coinbase will provide “one‑stop‑shop” infrastructure for trading, financing and on‑chain operations. Importantly, Aggarwal works closely with policymakers to ensure regulation enables innovation without stifling growth.

4. Alex Thorn – Head of Research, Galaxy​

4.1 Tokenized Equities: A First Step in a New Capital Markets Infrastructure​

Alex Thorn leads research at Galaxy and has been instrumental in the firm’s decision to tokenize its own shares. In September 2024, Galaxy announced it would allow shareholders to move their Galaxy Class A shares onto the Solana blockchain via a tokenization partnership with Superstate. Thorn explained that tokenized shares confer the same legal and economic rights as traditional shares, but they can be transferred peer‑to‑peer and settle in minutes rather than days. He said that tokenized equities are “a new method of building faster, more efficient, more inclusive capital markets”.

4.2 Working Within Existing Regulation and with the SEC​

Thorn stresses the importance of compliance. Galaxy built its tokenized share program to comply with U.S. securities laws: the tokenized shares are issued under a transfer agent, the tokens can only be transferred among KYC‑approved wallets, and redemptions occur via a regulated broker. Thorn said Galaxy wants to “work within existing rules” and will collaborate with the SEC to develop frameworks for on‑chain equities. He views this process as vital to convincing regulators that tokenization can protect investors while delivering efficiency gains.

4.3 Critical Perspective on Deposit Tokens and Unapproved Offerings​

Thorn has expressed caution about other forms of tokenization. Discussing bank‑issued deposit tokens, he compared the current landscape to the 1830s “wildcat banking” era and warned that deposit tokens may not be widely adopted if each bank issues its own token. He argued that regulators might treat deposit tokens as regulated stablecoins and require a single, rigid federal standard to make them fungible.

Similarly, he criticized pre‑IPO token offerings launched without issuer consent. In an interview about Jupiter’s pre‑IPO token of Robinhood stock, Thorn noted that many pre‑IPO tokens are unauthorized and “don’t offer clean share ownership”. For Thorn, tokenization must occur with issuer approval and regulatory compliance; unauthorized tokenization undermines investor protections and could harm public perception.

5. Arjun Sethi – Co‑CEO, Kraken​

5.1 Tokenized Equities Will Outgrow Stablecoins and Democratize Ownership​

Arjun Sethi, co‑CEO of Kraken, is an ardent proponent of tokenized equities. He predicts that tokenized equities will eventually surpass stablecoins in market size because they provide real economic rights and global accessibility. Sethi envisions a world where anyone with an internet connection can buy a fraction of any stock 24/7, without geographic restrictions. He argues that tokenized stocks shift power back to individuals by removing barriers imposed by geography or institutional gatekeepers; for the first time, people around the world can own and use a share of a stock like money.

5.2 Kraken’s xStocks and Partnerships​

In 2024 Kraken launched xStocks, a platform for trading tokenized U.S. equities on Solana. Sethi explained that the goal is to meet people where they are—by embedding tokenized stock trading into widely used apps. When Kraken integrated xStocks into the Telegram Wallet, Sethi said the integration aimed to “give hundreds of millions of users access to tokenized equities inside familiar apps”. He stressed that this is not just about novelty; it represents a paradigm shift toward borderless markets that operate 24/7.

Kraken also acquired the futures platform NinjaTrader and launched an Ethereum Layer 2 network (Ink), signaling its intent to expand beyond crypto into a full‑stack financial services platform. Partnerships with Apollo Global and Securitize allow Kraken to work on tokenizing private assets and corporate shares.

5.3 Regulatory Engagement and Public Listing​

Sethi believes that a borderless, always‑on trading platform will require regulatory cooperation. In a Reuters interview he said that expanding into equities is a natural step and paves the way for asset tokenization; the future of trading will be borderless, always on, and built on crypto rails. Kraken engages with regulators globally to ensure its tokenized products comply with securities laws. Sethi has also said Kraken might consider a public listing in the future if it supports their mission.

6. Comparative Analysis and Emerging Themes​

6.1 Tokenization as the Next Phase of Market Infrastructure​

All panelists agree that tokenization is a fundamental infrastructure shift. Mónica describes stablecoins as the catalyst that enables tokenizing every other asset class. Lo Bessette sees tokenization as a way to improve settlement efficiency and open access. Aggarwal predicts that all assets will eventually come on‑chain and that Coinbase will provide the infrastructure. Thorn emphasizes that tokenized equities create faster, more inclusive capital markets, while Sethi foresees tokenized equities surpassing stablecoins and democratizing ownership.

6.2 Necessity of Regulatory Clarity​

A recurring theme is the need for clear, consistent regulation. Mónica and Thorn insist that tokenized assets must comply with securities laws and that stablecoins and deposit tokens require strong regulation. Lo Bessette notes that Fidelity works closely with regulators, and its tokenized money‑market fund is designed to fit within existing regulatory frameworks. Aggarwal and Sethi highlight engagement with policymakers to ensure that their on‑chain products meet compliance requirements. Without regulatory clarity, tokenization risks replicating the fragmentation and opacity that blockchain seeks to solve.

6.3 Integration of Stablecoins and Tokenized Assets​

Stablecoins and tokenized treasuries are seen as foundational. Aggarwal views stablecoins as the native rail for AI and global commerce. Mónica sees well‑regulated stablecoins as the “starting gun” for tokenizing other assets. Lo Bessette’s tokenized money‑market fund and Thorn’s caution about deposit tokens highlight different approaches to tokenizing cash equivalents. As stablecoins become widely adopted, they will likely be used for settling trades of tokenized securities and RWAs.

6.4 Democratization and Global Accessibility​

Tokenization promises to democratize access to capital markets. Sethi’s enthusiasm for giving “hundreds of millions of users” access to tokenized equities through familiar apps captures this vision. Aggarwal sees tokenization enabling billions of people and AI agents to participate in digital commerce. Mónica’s view of 24/7 markets accessible globally aligns with these predictions. All emphasize that tokenization will remove barriers and bring inclusion to financial services.

6.5 Cautious Optimism and Challenges​

While optimistic, the panelists also recognize challenges. Thorn warns against unauthorized pre‑IPO tokenization and stresses that deposit tokens might replicate “wildcat banking” if each bank issues its own. Lo Bessette and Mónica call for careful regulatory design. Aggarwal and Sethi highlight infrastructure demands such as compliance, custody and user experience. Balancing innovation with investor protection will be key to realizing the full potential of tokenized capital markets.

Conclusion​

The visions expressed at TOKEN2049 and in subsequent interviews illustrate a shared belief that tokenization will redefine capital markets. Leaders from Haun Ventures, Fidelity, Coinbase, Galaxy and Kraken see tokenization as an inevitable evolution of financial infrastructure, driven by stablecoins, tokenized treasuries and tokenized equities. They anticipate that on‑chain markets will operate 24/7, enable global participation, reduce settlement friction and democratize access. However, these benefits depend on robust regulation, compliance and infrastructure. As regulators and industry participants collaborate, tokenization could unlock new forms of capital formation, democratize ownership and usher in a more inclusive financial system.

Vlad Tenev has emerged as one of traditional finance's most bullish voices on cryptocurrency, declaring that tokenization is an unstoppable "freight train" that will eventually consume the entire financial system. Throughout 2024-2025, the Robinhood CEO delivered increasingly bold predictions about crypto's inevitable convergence with traditional finance, backed by aggressive product launches including a $200 million acquisition of Bitstamp, tokenized stock trading in Europe, and a proprietary Layer 2 blockchain. His vision centers on blockchain technology offering an "order of magnitude" cost advantage that will eliminate the distinction between crypto and traditional finance within 5-10 years, though he candidly admits the U.S. will lag behind Europe due to "sticking power" of existing infrastructure. This transformation accelerated dramatically after the 2024 election, with Robinhood's crypto business quintupling post-election as regulatory hostility shifted to enthusiasm under the Trump administration.

The freight train thesis: Tokenization will consume everything​

At Singapore's Token2049 conference in October 2025, Tenev delivered his most memorable statement on crypto's future: "Tokenization is like a freight train. It can't be stopped, and eventually it's going to eat the entire financial system." This wasn't hyperbole but a detailed thesis he's been building throughout 2024-2025. He predicts most major markets will establish tokenization frameworks within five years, with full global adoption taking a decade or more. The transformation will expand addressable financial markets from single-digit trillions to tens of trillions of dollars.

His conviction rests on structural advantages of blockchain technology. "The cost of running a crypto business is an order of magnitude lower. There's just an obvious technology advantage," he told Fortune's Brainstorm Tech conference in July 2024. By leveraging open-source blockchain infrastructure, companies can eliminate expensive intermediaries for trade settlement, custody, and clearing. Robinhood is already using stablecoins internally to power weekend settlements, experiencing firsthand the efficiency gains from 24/7 instant settlement versus traditional rails.

The convergence between crypto and traditional finance forms the core of his vision. "I actually think cryptocurrency and traditional finance have been living in two separate worlds for a while, but they're going to fully merge," he stated at Token2049. "Crypto technology has so many advantages over the traditional way we're doing things that in the future there's going to be no distinction." He frames this not as crypto replacing finance, but as blockchain becoming the invisible infrastructure layer—like moving from filing cabinets to mainframes—that makes the financial system dramatically more efficient.

Stablecoins represent the first wave of this transformation. Tenev describes dollar-pegged stablecoins as the most basic form of tokenized assets, with billions already in circulation reinforcing U.S. dollar dominance abroad. "In the same way that stablecoins have become the default way to get digital access to dollars, tokenized stocks will become the default way for people outside the U.S. to get exposure to American equities," he predicted. The pattern will extend to private companies, real estate, and eventually all asset classes.

Building the tokenized future with stock tokens and blockchain infrastructure​

Robinhood backed Tenev's rhetoric with concrete product launches throughout 2024-2025. In June 2025, the company hosted a dramatic event in Cannes, France titled "To Catch a Token," where Tenev presented a metal cylinder containing "keys to the first-ever stock tokens for OpenAI" while standing by a reflecting pool overlooking the Mediterranean. The company launched over 200 tokenized U.S. stocks and ETFs in the European Union, offering 24/5 trading with zero commissions or spreads, initially on the Arbitrum blockchain.

The launch wasn't without controversy. OpenAI immediately distanced itself, posting "We did not partner with Robinhood, were not involved in this, and do not endorse it." Tenev defended the product, acknowledging the tokens aren't "technically" equity but maintain they give retail investors exposure to private assets that would otherwise be inaccessible. He dismissed the controversy as part of broader U.S. regulatory delays, noting "the obstacles are legal rather than technical."

More significantly, Robinhood announced development of a proprietary Layer 2 blockchain optimized for tokenized real-world assets. Built on Arbitrum's technology stack, this blockchain infrastructure aims to support 24/7 trading, seamless bridging between chains, and self-custody capabilities. Tokenized stocks will eventually migrate to this platform. Johann Kerbrat, Robinhood's crypto general manager, explained the strategy: "Crypto was built by engineers for engineers, and has not been accessible to most people. We're onboarding the world to crypto by making it as easy to use as possible."

Tenev's timeline projections reveal measured optimism despite his bold vision. He expects the U.S. to be "among the last economies to actually fully tokenize" due to infrastructure inertia. Drawing an analogy to transportation, he noted: "The biggest challenge in the U.S. is that the financial system basically works. It's why we don't have bullet trains—medium-speed trains get you there well enough." This candid assessment acknowledges that working systems have greater sticking power than in regions where blockchain offers more dramatic improvement over dysfunctional alternatives.

Bitstamp acquisition unlocks institutional crypto and global expansion​

Robinhood completed its $200 million acquisition of Bitstamp in June 2025, marking a strategic inflection point from pure retail crypto trading to institutional capabilities and international scale. Bitstamp brought 50+ active crypto licenses across Europe, the UK, U.S., and Asia, plus 5,000 institutional clients and $8 billion in cryptocurrency assets under custody. This acquisition addresses two priorities Tenev repeatedly emphasized: international expansion and institutional business development.

"There's two interesting things about the Bitstamp acquisition you should know. One is international. The second is institutional," Tenev explained on the Q2 2024 earnings call. The global licenses dramatically accelerate Robinhood's ability to enter new markets without building regulatory infrastructure from scratch. Bitstamp operates in over 50 countries, providing instant global footprint that would take years to replicate organically. "The goal is for Robinhood to be everywhere, anywhere where customers have smartphones, you should be able to open up a Robinhood account," he stated.

The institutional dimension proves equally strategic. Bitstamp's established relationships with institutional clients, lending infrastructure, staking services, and white-label crypto-as-a-service offerings transform Robinhood from retail-only to a full-stack crypto platform. "Institutions also want low-cost market access to crypto," Tenev noted. "We're really excited about bringing the same sort of Robinhood effect that we've brought to retail to the institutional space with crypto."

Integration proceeded rapidly through 2025. By Q2 2025 earnings, Robinhood reported Bitstamp exchange crypto notional trading volumes of $7 billion, complementing the Robinhood app's $28 billion in crypto volumes. The company also announced plans to hold its first crypto-focused customer event in France around midyear, signaling international expansion priorities. Tenev emphasized that unlike the U.S. where they started with stocks then added crypto, international markets might lead with crypto depending on regulatory environments and market demand.

Crypto revenue explodes from $135 million to over $600 million annually​

Financial metrics underscore the dramatic shift in crypto's importance to Robinhood's business model. Annual crypto revenue surged from $135 million in 2023 to $626 million in 2024—a 363% increase. This acceleration continued into 2025, with Q1 alone generating $252 million in crypto revenue, representing over one-third of total transaction-based revenues. Q4 2024 proved particularly explosive, with $358 million in crypto revenue, up over 700% year-over-year, driven by the post-election "Trump pump" and expanding product capabilities.

These numbers reflect both volume growth and strategic pricing changes. Robinhood's crypto take rate expanded from 35 basis points at the start of 2024 to 48 basis points by October 2024, as CFO Jason Warnick explained: "We always want to have great prices for customers, but also balance the return that we generate for shareholders on that activity." Crypto notional trading volumes reached approximately $28 billion monthly by late 2024, with assets under custody totaling $38 billion as of November 2024.

Tenev described the post-election environment on CNBC as producing "basically what people are calling the 'Trump Pump,'" noting "widespread optimism that the Trump administration, which has stated that they wish to embrace cryptocurrencies and make America the center of cryptocurrency innovation worldwide, is going to have a much more forward-looking policy." On the Unchained podcast in December 2024, he revealed Robinhood's crypto business "quintupled post-election."

The Bitstamp acquisition adds significant scale. Beyond the $8 billion in crypto assets and institutional client base, Bitstamp's 85+ tradable crypto assets and staking infrastructure expand Robinhood's product capabilities. Cantor Fitzgerald analysis noted Robinhood's crypto volume spiked 36% in May 2025 while Coinbase's fell, suggesting market share gains. With crypto representing 38% of projected 2025 revenues, the business has evolved from speculative experiment to core revenue driver.

From regulatory "carpet bombing" to playing offense under Trump​

Tenev's commentary on crypto regulation represents one of the starkest before-and-after narratives in his 2024-2025 statements. Speaking at the Bitcoin 2025 conference in Las Vegas, he characterized the previous regulatory environment bluntly: "Under the previous administration, we have been subject to…it was basically a carpet bombing of the entire industry." He expanded on a podcast: "In the previous administration with Gary Gensler at the SEC, we were very much in a defensive posture. There was crypto, which was, as you guys know, basically they were trying to delete crypto from the U.S."

This wasn't abstract criticism. Robinhood Crypto received an SEC Wells Notice in May 2024 signaling potential enforcement action. Tenev responded forcefully: "This is a disappointing development. We firmly believe U.S. consumers should have access to this asset class. They deserve to be on equal footing with people all over the world." The investigation eventually closed in February 2025 with no action, prompting Chief Legal Officer Dan Gallagher to state: "This investigation never should have been opened. Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities."

The Trump administration's arrival transformed the landscape. "Now suddenly, you're allowed to play some offense," Tenev told CBS News at the Bitcoin 2025 conference. "And we have an administration that's open to the technology." His optimism extended to specific personnel, particularly Paul Atkins' nomination to lead the SEC: "This administration has been hostile to crypto. Having people that understand and embrace it is very important for the industry."

Perhaps most significantly, Tenev revealed direct engagement with regulators on tokenization: "We've actually been engaging with the SEC crypto task force as well as the administration. And it's our belief, actually, that we don't even need congressional action to make tokenization real. The SEC can just do it." This represents a dramatic shift from regulation-by-enforcement to collaborative framework development. He told Bloomberg Businessweek: "Their intent appears to be to ensure that the US is the best place to do business and the leader in both of the emergent technology industries coming to the fore: crypto and AI."

Tenev also published a Washington Post op-ed in January 2025 advocating for specific policy reforms, including creating security token registration regimes, updating accredited investor rules from wealth-based to knowledge-based certification, and establishing clear guidelines for exchanges listing security tokens. "The world is tokenizing, and the United States should not get left behind," he wrote, noting the EU, Singapore, Hong Kong, and Abu Dhabi have advanced comprehensive frameworks while the U.S. lags.

Bitcoin, Dogecoin, and stablecoins: Selective crypto asset views​

Tenev's statements reveal differentiated views across crypto assets rather than blanket enthusiasm. On Bitcoin, he acknowledged the asset's evolution: "Bitcoin's gone from largely being ridiculed to being taken very seriously," citing Federal Reserve Chair Powell's comparison of Bitcoin to gold as institutional validation. However, when asked about following MicroStrategy's strategy of holding Bitcoin as a treasury asset, Tenev declined. In an interview with Anthony Pompliano, he explained: "We have to do the work of accounting for it, and it's essentially on the balance sheet anyway. So there's a real reason for it [but] it could complicate things for public market investors"—potentially casting Robinhood as a "quasi Bitcoin-holding play" rather than a trading platform.

Notably, he observed that "Robinhood stock is already highly correlated to Bitcoin" even without holding it—HOOD stock rose 202% in 2024 versus Bitcoin's 110% gain. "So I would say we wouldn't rule it out. We haven't done it thus far but those are the kind of considerations we have." This reveals pragmatic rather than ideological thinking about crypto assets.

Dogecoin holds special significance in Robinhood's history. On the Unchained podcast, Tenev discussed "how Dogecoin became one of Robinhood's biggest assets for user onboarding," acknowledging that millions of users came to the platform through meme coin interest. Johann Kerbrat stated: "We don't see Dogecoin as a negative asset for us." Despite efforts to distance from 2021's meme stock frenzy, Robinhood continues offering Dogecoin, viewing it as a legitimate entry point for crypto-curious retail investors. Tenev even tweeted in 2022 asking whether "Doge can truly be the future currency of the Internet," showing genuine curiosity about the asset's properties as an "inflationary coin."

Stablecoins receive Tenev's most consistent enthusiasm as practical infrastructure. Robinhood invested in the Global Dollar Network's USDG stablecoin, which he described on the Q4 2024 earnings call: "We have USDG that we partner with a few other great companies on...a stablecoin that passes back yield to holders, which we think is the future. I think many of the leading stablecoins don't have a great way to pass yield to holders." More significantly, Robinhood uses stablecoins internally: "We see the power of that ourselves as a company...there's benefits to the technology and the 24-hour instant settlements for us as a business. In particular, we're using stablecoin to power a lot of our weekend settlements now." He predicted this internal adoption will drive broader institutional stablecoin adoption industrywide.

For Ethereum and Solana, Robinhood launched staking services in both Europe (enabled by MiCA regulations) and the U.S. Tenev noted "increasing interest in crypto staking" without it cannibalizing traditional cash-yield products. The company expanded its European crypto offerings to include SOL, MATIC, and ADA after these faced SEC scrutiny in the U.S., illustrating geographic arbitrage in regulatory approaches.

Prediction markets emerge as hybrid disruption opportunity​

Prediction markets represent Tenev's most surprising crypto-adjacent bet, launching event contracts in late 2024 and rapidly scaling to over 4 billion contracts traded by October 2025, with 2 billion contracts in Q3 2025 alone. The 2024 presidential election proved the concept, with Tenev revealing "over 500 million contracts traded in right around a week leading up to the election." But he emphasized this isn't cyclical: "A lot of people had skepticism about whether this would only be an election thing...It's really much bigger than that."

At Token2049, Tenev articulated prediction markets' unique positioning: "Prediction markets has some similarities with traditional sports betting and gambling, there's also similarities with active trading in that there are exchange-traded products. It also has some similarities to traditional media news products because there's a lot of people that use prediction markets not to trade or speculate, but because they want to know." This hybrid nature creates disruption potential across multiple industries. "Robinhood will be front and center in terms of giving access to retail," he declared.

The product expanded beyond politics to sports (college football proving particularly popular), culture, and AI topics. "Prediction markets communicate information more quickly than newspapers or broadcast media," Tenev argued, positioning them as both trading instruments and information discovery mechanisms. On the Q4 2024 earnings call, he promised: "What you should expect from us is a comprehensive events platform that will give access to prediction markets across a wide variety of contracts later this year."

International expansion presents challenges due to varying regulatory classifications—futures contracts in some jurisdictions, gambling in others. Robinhood initiated talks with the UK's Financial Conduct Authority and other regulators about prediction market frameworks. Tenev acknowledged: "As with any new innovative asset class, we're pushing the boundaries here. And there's not regulatory clarity across all of it yet in particular sports which you mentioned. But we believe in it and we're going to be a leader."

AI-powered tokenized one-person companies represent convergence vision​

At the Bitcoin 2025 conference, Tenev unveiled his most futuristic thesis connecting AI, blockchain, and entrepreneurship: "We're going to see more one-person companies. They're going to be tokenized and traded on the blockchain, just like any other asset. So it's going to be possible to invest economically in a person or a project that that person is running." He explicitly cited Satoshi Nakamoto as the prototype: "This is essentially like Bitcoin itself. Satoshi Nakamoto's personal brand is powered by technology."

The logic chains together several trends. "One of the things that AI makes possible is that it produces more and more value with fewer and fewer resources," Tenev explained. If AI dramatically reduces the resources required to build valuable companies, and blockchain provides instant global investment infrastructure through tokenization, entrepreneurs can create and monetize ventures without traditional corporate structures, employees, or venture capital. Personal brands become tradable assets.

This vision connects to Tenev's role as executive chairman of Harmonic, an AI startup focused on reducing hallucinations through Lean code generation. His mathematical background (Stanford BS, UCLA MS in Mathematics) informs optimism about AI solving complex problems. In an interview, he described the aspiration of "solving the Riemann hypothesis on a mobile app"—referencing one of mathematics' greatest unsolved problems.

The tokenized one-person company thesis also addresses wealth concentration concerns. Tenev's Washington Post op-ed criticized current accredited investor laws restricting private market access to high-net-worth individuals, arguing this concentrates wealth among the top 20%. If early-stage ventures can tokenize equity and distribute it globally via blockchain with appropriate regulatory frameworks, wealth creation from high-growth companies becomes more democratically accessible. "It's time to update our conversation about crypto from bitcoin and meme coins to what blockchain is really making possible: A new era of ultra-inclusive and customizable investing fit for this century," he wrote.

Robinhood positions at the intersection of crypto and traditional finance​

Tenev consistently describes Robinhood's unique competitive positioning: "I think Robinhood is uniquely positioned at the intersection of traditional finance and DeFi. We're one of the few players that has scale, both in traditional financial assets and cryptocurrencies." This dual capability creates network effects competitors struggle to replicate. "What customers really love about trading crypto on Robinhood is that they not only have access to crypto, but they can trade equities, options, now futures, soon a comprehensive suite of event contracts all in one place," he told analysts.

The strategy involves building comprehensive infrastructure across the crypto stack. Robinhood now offers: crypto trading with 85+ assets via Bitstamp, staking for ETH and SOL, non-custodial Robinhood Wallet for accessing thousands of additional tokens and DeFi protocols, tokenized stocks and private companies, crypto perpetual futures in Europe with 3x leverage, proprietary Layer 2 blockchain under development, USDG stablecoin investment, and smart exchange routing allowing active traders to route directly to exchange order books.

This vertical integration contrasts with specialized crypto exchanges lacking traditional finance integration or traditional brokerages dabbling in crypto. "Tokenization once permissible in the U.S., I think, is going to be a huge opportunity that Robinhood is going to be front and center in," Tenev stated on the Q4 2024 earnings call. The company launched 10+ product lines each on track for $100 million+ annual revenue, with crypto representing a substantial pillar alongside options, stocks, futures, credit cards, and retirement accounts.

Asset listing strategy reflects balancing innovation with risk management. Robinhood lists fewer cryptocurrencies than competitors—20 in the U.S., 40 in Europe—maintaining what Tenev calls a "conservative approach." After receiving the SEC Wells Notice, he emphasized: "We've operated our crypto business in good faith. We've been very conservative in our approach in terms of coins listed and services offered." However, regulatory clarity is changing this calculus: "In fact, we've added seven new assets since the election. And as we continue to get more and more regulatory clarity, you should expect to see that continue and accelerate."

The competitive landscape includes Coinbase as the dominant U.S. crypto exchange, plus traditional brokerages like Schwab and Fidelity adding crypto. CFO Jason Warnick addressed competition on earnings calls: "While there may be more competition over time, I do expect that there will be greater demand for crypto as well. I think we're beginning to see that crypto is becoming more mainstream." Robinhood's crypto volume spike of 36% in May 2025 while Coinbase's declined suggests the integrated platform approach is winning share.

Timeline and predictions: Five years to frameworks, decades to completion​

Tenev provides specific timeline predictions rare among crypto optimists. At Token2049, he stated: "I think most major markets will have some framework in the next five years," targeting roughly 2030 for regulatory clarity across major financial centers. However, reaching "100% adoption could take more than a decade," acknowledging the difference between frameworks existing and complete migration to tokenized systems.

His predictions break down by geography and asset class. Europe leads on regulatory frameworks through MiCA regulations and will likely see tokenized stock trading go mainstream first. The U.S. will be "among the last economies to actually fully tokenize" due to infrastructure sticking power, but the Trump administration's crypto-friendly posture accelerates timelines versus previous expectations. Asia, particularly Singapore, Hong Kong, and Abu Dhabi, advances rapidly due to both regulatory clarity and less legacy infrastructure to overcome.

Asset class predictions show staggered adoption. Stablecoins already achieved product-market fit as the "most basic form of tokenized assets." Stocks and ETFs enter tokenization phase now in Europe, with U.S. timelines depending on regulatory developments. Private company equity represents near-term opportunity, with Robinhood already offering tokenized OpenAI and SpaceX shares despite controversy. Real estate comes next—Tenev noted tokenizing real estate is "mechanically no different from tokenizing a private company"—assets placed into corporate structures, then tokens issued against them.

His boldest claim suggests crypto entirely absorbs traditional finance architecture: "In the future, everything will be on-chain in some form" and "the distinction between crypto and TradFi will disappear." The transformation occurs not through crypto replacing finance but blockchain becoming the invisible settlement and custody layer. "You don't have to squint too hard to imagine a world where stocks are on blockchains," he told Fortune. Just as users don't think about TCP/IP when browsing the web, future investors won't distinguish between "crypto" and "regular" assets—blockchain infrastructure simply powers all trading, custody, and settlement invisibly.

Conclusion: Technology determinism meets regulatory pragmatism​

Vlad Tenev's cryptocurrency vision reveals a technology determinist who believes blockchain's cost and efficiency advantages make adoption inevitable, combined with a regulatory pragmatist who acknowledges legacy infrastructure creates decade-long timelines. His "freight train" metaphor captures this duality—tokenization moves with unstoppable momentum but at measured speed requiring regulatory tracks to be built ahead of it.

Several insights distinguish his perspective from typical crypto boosterism. First, he candidly admits the U.S. financial system "basically works," acknowledging working systems resist replacement regardless of theoretical advantages. Second, he doesn't evangelize blockchain ideologically but frames it pragmatically as infrastructure evolution comparable to filing cabinets giving way to computers. Third, his revenue metrics and product launches back rhetoric with execution—crypto grew from $135 million to over $600 million annually, with concrete products like tokenized stocks and a proprietary blockchain under development.

The dramatic regulatory shift from "carpet bombing" under the Biden administration to "playing offense" under Trump provides the catalyst Tenev believes enables U.S. competitiveness. His direct SEC engagement on tokenization frameworks and public advocacy through op-eds position Robinhood as a partner in writing rules rather than evading them. Whether his prediction of convergence between crypto and traditional finance within 5-10 years proves accurate depends heavily on regulators following through with clarity.

Most intriguingly, Tenev's vision extends beyond speculation and trading to structural transformation of capital formation itself. His AI-powered tokenized one-person companies and advocacy for reformed accredited investor laws suggest belief that blockchain plus AI democratizes wealth creation and entrepreneurship fundamentally. This connects his mathematical background, immigrant experience, and stated mission of "democratizing finance for all" into a coherent worldview where technology breaks down barriers between ordinary people and wealth-building opportunities.

Whether this vision materializes or falls victim to regulatory capture, entrenched interests, or technical limitations remains uncertain. But Tenev has committed Robinhood's resources and reputation to the bet that tokenization represents not just a product line but the future architecture of the global financial system. The freight train is moving—the question is whether it reaches the destination on his timeline.