Robinhood CEO touts blockchain as antidote to stock market inefficiencies
Robinhood CEO touts blockchain as antidote to stock market inefficiencies Robinhood CEO touts blockchain as antidote to stock market inefficiencies
Tenev believes blockchain can free up spherical-the-clock trading for shares, mirroring the efficiency of crypto markets.
Quilt art work/illustration by diagram of CryptoSlate. Picture entails mixed yelp material which would possibly well perchance well include AI-generated yelp material.
Robinhood CEO Vlad Tenev believes that blockchain technology will at final underpin stock trading, arguing that cryptoâs infrastructure would possibly well perchance well get monetary markets extra accessible, label-efficient, and resilient.
Tenev made the stammer all the diagram by diagram of a fireplace chat, where he outlined how integrating shares with blockchain networks would possibly well perchance well put off many inefficiencies in ancient trading programs, allowing resources to change seamlessly across the clock.
Crypto rails in stock markets
Tenev pointed to the 24/7 nature of crypto trading, lower settlement instances, and reduced transaction charges as key advantages over legacy monetary infrastructure. He contrasted this with the stock market, where trades are restricted to explicit hours and settlement can rob days.
Tenev acknowledged:
“Thereâs no clarification why investors must possess the liberty to change meme coins at any time, but face barriers when attempting to make investments in firms like SpaceX or OpenAI.”
He added that the identical blockchain technology primitive for cryptocurrencies would possibly well perchance well perchance be utilized to shares, bonds, and various resources.
While some ancient monetary institutions possess began finding out blockchain for clearing and settlement processes, regulatory uncertainty continues to hinder widespread adoption.
Essentially basically basically based on Tenev, securities rules in the US possess largely restricted cryptoâs integration with accurate-world monetary resources, limiting its elephantine doable.
Beyond regulatory hurdles
Tenev argued that the dumb adoption of crypto infrastructure in ancient markets is now not as a consequence of technological boundaries but moderately a lack of regulatory clarity.
He mentioned:
“We havenât been allowed to join crypto with productive resources in the US thanks to securities rules, but thatâs something weâll wish to tackle.”
Then but again, he acknowledged that the landscape is initiating to shift below the novel administration and expressed optimism about overcoming the hurdles which possess stifled the exchange to this point.
Tenev is scheduled to attend the White Home Crypto Summit later this week, where he plans to recommend for clearer rules that will perchance well perchance enable blockchain technology to support mainstream monetary markets.
Robinhood, which has expanded its crypto choices despite regulatory scrutiny, is positioning itself as a pacesetter in the US digital asset ecosystem. The firm has step by step grown its crypto services alongside its stock trading platform, giving retail investors publicity to each markets.
Tenev’s comments come as main monetary avid gamers, including asset managers and banks, explore ways to combine blockchain into their operations, with some already experimenting with tokenized securities and digital asset settlements.
If regulators provide a clearer framework, Tenev believes crypto technology would possibly well perchance well abet as the backbone of the next-generation monetary system, bringing the efficiency and accessibility of blockchain to stock trading and past.
Mentioned listed right here
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his abilities worldwide for over a decade. Focusing on monetary journalism, he now specializes in crypto reporting.
Newest US Tales
On this text
Robinhood
Robinhood is an American monetary services firm headquartered in Menlo Park, California that modified into as soon as founded in April 2013 by Vladimir Tenev and Baiju Bhatt.
Source credit : cryptoslate.com
