"Robinhood CEO: Tokenizing Private Stocks, Crypto's Ease of Creation Drives AI Investment"

Crypto's ease of creation and trading highlights the potential of tokenizing private stocks, according to Robinhood CEO Vladimir Tenev. In an interview with Bloomberg, Tenev noted that creating a cryptocurrency and having it trade in minutes demonstrates the simplicity of tokenizing stocks in private companies like OpenAI and SpaceX. He emphasized the contrast between this process and the complexity of the traditional IPO process, highlighting the potential of tokenization to tap into global liquidity using blockchain technology.

Tenev expressed frustration that retail investors on Robinhood's platform have been unable to capitalize on the artificial intelligence revolution due to limited investment options. He noted that while investors can buy Nvidia and Tesla stocks, they cannot invest directly in companies like OpenAI or Anthropic. Tenev believes that the Trump administration's push to make the US a leader in crypto and AI will better position US companies like Robinhood to explore the boundaries of these technologies.

To bring real-world assets onto the blockchain, Tenev suggested that accreditation and registration rules would be necessary to provide clarity on how trading platforms can list crypto-based securities. He also emphasized the importance of disclosure requirements to help investors differentiate between established companies and earlier-stage projects.

Tenev's interest in exploring crypto further comes as the US Securities and Exchange Commission (SEC) closed its investigation into Robinhood Crypto on February 24. The SEC had issued a Wells notice to Robinhood Crypto in May 2022, indicating its intention to file an enforcement action over alleged securities violations. Despite this, Robinhood reported a record $1 billion in revenue in the fourth quarter of 2022, with cryptocurrency revenue accounting for $358 million of the total. Crypto trading volumes increased by over 450% year-over-year to $71 billion, and Robinhood's total crypto assets under custody increased by 75% quarter-on-quarter to $35 million.