Robinhood CEO Vladimir Tenev: Tokenizing Private Stocks Could Revolutionize Funding

Robinhood CEO Vladimir Tenev has highlighted the transformative potential of blockchain technology in the world of private company funding, particularly through the tokenization of private stocks. In a recent interview with Bloomberg on February 25, Tenev pointed to the ease with which cryptocurrencies can be created and traded, emphasizing how this could disrupt traditional investment structures, especially for major private firms like OpenAI and SpaceX.

The Ease of Tokenizing Assets

Tenev noted that creating a cryptocurrency and having it trading in a matter of minutes is a powerful demonstration of the capabilities blockchain technology offers. “You can sit down in front of some software, create a coin, and have it trading in 5 minutes,” Tenev explained. “That’s a scary thing, but it’s also an incredibly powerful thing when you compare it to the cumbersome process of an IPO.”

The CEO believes this simplicity in asset creation could revolutionize how private companies seek funding, making it easier for them to tap into global liquidity without the complexities and lengthy timelines of traditional public listings. “That’s why I think tokenization is so interesting,” he said, emphasizing how quickly blockchain can list assets and attract investors worldwide.

Opening Access to High-Value Investments

Tenev also pointed out a significant challenge faced by Robinhood’s retail investor base: limited access to high-value, private technological companies like OpenAI and Anthropic. While companies such as Nvidia and Tesla are available for investment, there are few opportunities to invest in private entities driving the biggest technological revolution—artificial intelligence.

“What can you invest in? Nvidia and to some degree, Tesla, but no OpenAI, no Anthropic,” he said. According to Tenev, the ability to tokenize stocks in companies like these would give retail investors the opportunity to participate in some of the most innovative industries of the modern age.

Crypto and AI: A Combined Future for US Companies

Tenev also discussed the impact of the US government’s initiatives in crypto and AI, specifically under the Trump administration's push to establish the country as a global leader in these technologies. He believes that this focus will better position US companies like Robinhood to push the boundaries of both AI and cryptocurrency. This dual focus could lead to more advanced, tech-driven solutions for retail investors and open new investment avenues.

However, Tenev emphasized that bringing private assets on-chain, through tokenization, would require regulatory clarity. This includes accreditation and registration rules that define how trading platforms can list crypto-based securities. He also mentioned the need for disclosure requirements to ensure transparency for investors, particularly when distinguishing between more established companies like SpaceX, which may have audited financials, and early-stage ventures that might lack similar oversight.

Regulatory Developments and Robinhood’s Crypto Focus

Tenev’s remarks come at a time when Robinhood is expanding its presence in the cryptocurrency market. The company’s crypto-focused arm, Robinhood Crypto, recently saw significant growth, posting a record $1 billion in revenue for the fourth quarter of 2024. Cryptocurrency revenue accounted for $358 million of that total, and trading volumes surged by over 450% year-over-year, reaching $71 billion. Additionally, Robinhood’s total crypto assets under custody grew by 75% quarter-on-quarter to $35 million.

This growth comes as the US Securities and Exchange Commission (SEC) closed its investigation into Robinhood Crypto on February 24, 2025. The SEC had previously issued a Wells notice in May 2024 under former Chair Gary Gensler, signaling potential enforcement action over alleged securities violations. With the closure of this investigation, Robinhood can now focus more fully on expanding its crypto offerings and exploring tokenization and other blockchain-based innovations.

The Future of Tokenization and Blockchain in Finance

Tenev’s advocacy for tokenization and its potential to reshape how investors access private company stocks underscores a broader shift in the financial landscape. As blockchain technology matures, the possibility of transforming private equity markets and enabling retail investors to access high-growth, tech-driven companies could democratize investment opportunities in ways that were previously unimaginable.

The ability to create and trade assets in such a fluid and accessible manner presents both opportunities and challenges. However, for firms like Robinhood, which are already leveraging cryptocurrency to cater to a retail investor base, the future looks promising. As regulatory frameworks continue to evolve, Tenev’s vision of a tokenized financial world may soon become a reality, offering new avenues for investment and growth in the rapidly advancing tech space.