Tokenization Will Dominate the Global Financial System, Predicts Robinhood CEO Vlad Tenev

Robinhood CEO Vlad Tenev projects that tokenization—the process of digitizing traditional assets into blockchain-based tokens—will become the new foundation of the global financial system.
In his latest interview and keynote speech at Token2049 in Singapore, Tenev described this phenomenon as an “inevitable” trend that will gradually merge with the entire conventional financial infrastructure.

“Tokenization Is an Unstoppable Freight Train”

Using a powerful analogy, Tenev compared the adoption of tokenization to a freight train that keeps moving forward and cannot be stopped.

“Tokenization is like a freight train; it can’t be stopped, and it will eventually consume the entire financial system,”
said Vlad Tenev at Token2049, as quoted by Business Insider and PYMNTS.com.

According to him, the main advantages of tokenization, ranging from lower transaction costs and global market accessibility to 24/7 borderless trading—will accelerate the migration of various asset classes onto blockchain networks.
These include public stocks, private assets, real estate, and other complex financial instruments.
 

Robinhood’s First Step into the World of Tokenization

Robinhood has already taken concrete steps in the tokenization space. In June 2025, the company launched equity tokens for the European Union market, allowing users to trade over 200 U.S.-based stocks and ETFs through digital tokens.

However, Tenev emphasized that these tokens do not yet represent direct ownership of the underlying shares. Instead, they provide indirect exposure to the price movements of those assets.Robinhood is also reportedly exploring tokenization in the real estate and real-world asset (RWA) sectors.According to Tenev, the mechanism of real estate tokenization is conceptually similar to that of private company tokenization, as both rely on the digital representation of tradable economic value.

Regulation and Liquidity: The Two Main Challenges

Despite his optimism, Tenev acknowledged that the biggest challenges to tokenization lie not in technology, but in legal frameworks and market liquidity. Non-uniform regulations—especially in the United States—have made many companies cautious. Additionally, the low secondary trading volume of RWA tokens indicates that the tokenization market is still in its experimental stage. Academic research published on arXiv also highlights that liquidity constraints could hinder mass adoption, even though the long-term potential remains significant. Tenev predicts that a clear regulatory framework for tokenization will emerge within the next five to ten years, with major economies such as the U.S., the European Union, and Singapore leading the way in setting global standards.

Systemic Impact on the Financial Industry

If Tenev’s predictions come true, traditional financial institutions, stock exchanges, and global financial regulators will face a massive paradigm shift. Asset governance models, settlement systems, and even ownership recording mechanisms will transition from centralized formats to decentralized ledgers that operate continuously 24 hours a day, 7 days a week.