Tenev argued that focusing only on ownership structure misses the broader market-structure shift. Tokenized assets can potentially trade around the clock, settle in real time and move between compatible wallets and platforms without relying on the transfer systems used by traditional brokers.
For Tenev, the strongest case is settlement.
He pointed to the 2021 GameStop (GME) trading frenzy, when Robinhood restricted purchases of some stocks after clearinghouse collateral demands surged. The episode has remained central to Tenev’s argument that legacy settlement infrastructure can create acute pressure during periods of market stress.
“On the blockchain, Stock Tokens can trade, settle, and move in real time. Real-time settlement means much less risk and pressure on the system, particularly in times of severe market stress,” Tenev said.
U.S. stock settlement has since moved from two business days to one, known as T+1. Tenev argued that tokenization could further reduce that delay, thereby lowering the risk and collateral requirements that arise between a trade and its settlement.
He also said tokenization could address two other longstanding frictions in traditional markets: limited trading hours and cumbersome asset transfers.
Robinhood currently offers 24/5 stock trading in the U.S., but Tenev said blockchain infrastructure could make 24/7 trading native rather than requiring brokers to connect multiple exchanges and alternative trading systems.
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