Robinhood CEO Vlad Tenev stated that the current lack of long-term regulatory clarity for tokenized equities in the US hinders the adoption of the technology by institutional investors. While the SEC has introduced a temporary innovation exemption, Tenev emphasized that further legislation is required to ensure market stability over the next five years.
The tokenized stock market is projected to reach $349 billion by 2030, growing from $4.43 billion as of September 15, according to Binance Research. Despite this potential, traditional issuers like Microsoft, Alphabet, and Goldman Sachs have previously opposed the listing of their shares on tokenized venues.
Robinhood currently offers approximately 200 stock tokens on its own chain, structured as debt securities. These products do not currently qualify for the SEC exemption because they lack the voting and dividend rights associated with conventional shares. The company plans to launch private-company stock tokens internationally.
In the third quarter, Robinhood reported a 55% year-on-year decline in cryptocurrency revenue to $120 million, with crypto trading volume dropping 38% to $50 billion. Conversely, the company's event-contract business saw revenue grow sixfold to $173 million, with trading volume reaching 16.4 billion contracts.
Overall net revenue for the company reached a record $1.42 billion, marking a 12% increase. However, the adjusted earnings per share of $0.60 fell short of analyst expectations by 4 cents.
