Tokenization to 'Eat Entire Financial System,' Robinhood CEO Predicts

Singapore – Robinhood Markets CEO Vlad Tenev declared that tokenization is poised to fundamentally transform the global financial landscape, stating, "tokenization will eat the entire financial system." Tenev made the assertive prediction during a panel discussion at the Token2049 conference in Singapore on October 2, 2025, emphasizing the inevitability of this shift.

Tenev likened tokenization to an unstoppable "freight train," highlighting its potential to merge cryptocurrency and traditional financial systems. He anticipates that major markets will establish regulatory frameworks for tokenization within the next five years, though full global adoption could take over a decade. Robinhood has already begun offering tokenized U.S. stocks to European customers, aiming to make illiquid assets more accessible and reduce transaction fees.

The process of tokenizing an asset involves creating a digital representation on a blockchain, enabling 24/7 trading and faster settlements. This technology is expected to expand the market for various assets, from stocks and real estate to commodities, from low-single-digit trillions to tens of trillions of dollars. Tenev believes this will become the default method for accessing U.S. stocks outside the United States.

Despite the projected global impact, Tenev suggested that the U.S. might be slower to fully embrace tokenization due to its established financial infrastructure. He noted that Europe is currently leading in developing regulatory clarity, which is crucial for widespread adoption. Institutional giants like Morgan Stanley and BlackRock have also signaled interest in tokenization, further validating the trend.

Critics acknowledge the potential benefits of tokenization, such as increased market efficiency and broader access to investments, but also raise concerns about regulatory complexities and the nature of ownership. Tenev, however, remains optimistic, foreseeing a future where the advantages of blockchain technology lead to a complete integration of crypto and traditional finance.