Johann Kerbrat discusses Robinhood's response to the SEC's new innovation exemption for tokenized stocks, emphasizing that this regulatory clarity opens the door for bringing their tokenization products onshore in the US. He also provides insights on Robinhood Chain's growth, the mechanics of tokenized stock trading, and the future of 24/7 markets.
Summarized by Podsumo
Robinhood Chain has seen significant growth, with $21 billion in tokenized assets, $15 billion deposited into apps, and 14 million unique wallets, making it one of the top chains for developer activity.
The SEC's innovation exemption is a key development for tokenization in the US, though it has a five-year limit and caps on trading volume and asset count.
72% of Robinhood stock token volume occurs outside traditional market hours, highlighting the demand for 24/7 trading and instant settlement.
"The more pools available, the more market makers are going to be interested in the arbitrage opportunities, and therefore the pricing issue will be solved."
"In a few years, we are not even going to talk about new markets versus traditional markets. I think it's just going to be one market and it's going to be based on blockchain."
"One of the reasons we wanted to build an L2 was to be able to rely on the decentralization and security that Ethereum has built."