Robinhood CEO Says Tokenized Stocks Could Prevent Another GameStop Freeze

Robinhood CEO Vlad Tenev argues that blockchain-based stock tokens could prevent future trading disruptions like the 2021 GameStop freeze. He attributes the freeze to outdated settlement infrastructure and slower trading cycles, which created liquidity pressures during high-volume events according to analysis. Tenev said even the shift to T+1 settlement remains insufficient in today's 24/7 trading environment as reported.

He proposes moving stocks onto blockchains for real-time settlement and 24/7 trading. Tokenized shares eliminate lengthy settlement periods, reducing systemic risk for clearinghouses and brokerages. Robinhood has already minted nearly 2,000 tokenized U.S. stocks and ETFs, totaling $17 million.

Tenev also calls for regulatory action to enable tokenized equities. He urges Congress to pass the CLARITY Act, which would require the SEC to write clear rules for blockchain-based shares.

Why Did This Happen?

The 2021 trading freeze occurred due to the two-day settlement system. Brokers like Robinhood faced massive collateral requirements during the GameStop rally, forcing emergency funding measures to remain operational. Tenev argues the problem was structural, not caused by bad actors.

Regulators have since reduced settlement times to one day. However, Tenev says even T+1 settlement is inadequate in a real-time trading world. He highlights blockchain technology as a potential solution for 24/7 markets with instant asset transfers.

What Are Analysts Watching Next?

Deloitte issued a 2026 market outlook warning about risks from faster settlement and tokenized securities. The firm warns that T+0 settlement—allowing trades to settle on the same day— could create dangerous blind spots if reporting and oversight lag.

The report highlights both opportunities and risks. Tokenized securities promise faster asset and cash movement but may increase operational failures and liquidity pressures if reporting requirements are reduced. Deloitte expects initial experimentation through contained pilot programs rather than a full market overhaul.

WisdomTree, a major ETF provider, is expanding tokenized fund access to Solana. The firm now offers its full suite of tokenized products on the blockchain, including equities, fixed income, and money market funds. This move reflects broader industry interest in blockchain-based financial infrastructure.

What Are Institutional Players Doing?

Coinchange, a digital asset platform, forecasts a $30 billion tokenization boom in 2026. The firm's 2026 Institutional Outlook report highlights tokenized real-world assets like Treasuries and private credit as key growth areas. It also notes that on-chain money-market funds and private debt are evolving into programmable, yield-bearing financial instruments.

Regulatory clarity remains a critical factor. The SEC has shifted its enforcement strategy under new leadership, closing or dropping at least 17 crypto-related cases since early 2025. The agency now appears to favor targeted enforcement focused on investor harm, rather than symbolic legal battles.

The SEC's recent dismissal of the Gemini Earn lawsuit marked another shift in enforcement posture. The case was closed after Gemini returned assets in kind, signaling a broader trend toward resolution over prolonged legal battles.

GameStop itself has drawn renewed investor interest. Famed investor Michael Burry revealed a new stake in the company, citing its $4.7 billion cash reserves and CEO Ryan Cohen's strategic vision. Burry described the move as a long-term value play rather than a speculative meme stock bet.

GameStop shares rose 8% following Burry's disclosure, with Cohen recently purchasing 1 million shares personally. Shareholders will soon vote on Cohen's performance-based compensation package, which ties rewards to reaching ambitious targets like a $100 billion market cap.