Preventing a GameStop (GME) redux: Vlad Tenev says tokenization can fix

Five years after Robinhood halted trades on GameStop and other meme stocks in January 2021, CEO Vlad Tenev attributed the chaos to outdated financial infrastructure, specifically the slow trade settlement system, which led to massive deposit requirements for brokers.

Tenev argued that even the current T+1 settlement cycle is too slow for modern markets. His proposed solution is moving stocks on-chain through tokenization, which converts assets into blockchain tokens, eliminating lengthy settlement periods and reducing systemic risk.

Robinhood is already minting tokenized versions of U.S. stocks and plans to unlock 24/7 trading and DeFi access soon. However, Tenev urged lawmakers to pass the CLARITY Act to prompt the SEC to establish rules for tokenized equities, enabling real-time settlement for retail traders.

(Source：CoinDesk)