Robinhood CEO: Tokenized stocks may be inevitable, potentially reducing trading freezes on traditional exchanges.

Robinhood CEO Vlad Tenev stated that tokenized stocks have the potential to alleviate or even avoid the frequent trading freezes seen in traditional exchanges, making their implementation in the US market "almost inevitable." In an article published on the X platform, Tenev recalled the 2021 GameStop and other meme stock trading freezes, noting that they were among the most significant systemic failures in the stock market in recent years, rooted in the then-existing long stock settlement cycles and complex clearing rules. Tenev pointed out that although the US stock settlement cycle has been shortened from two days to one day, settlement can still extend to three to four days on Fridays or during long holidays, and systemic risks remain. He believes that tokenizing stocks and putting them on the blockchain can enable real-time settlement, thereby reducing the risk exposure of clearing houses and brokerages and alleviating market pressure during periods of high volatility. Tenev also emphasized that with the SEC exploring tokenized securities and Congress advancing the CLARITY Act, the current period is a crucial window for promoting the implementation of a regulatory framework for stock tokenization. (Cointelegraph)