Vlad Tenev from Robinhood believes tokenization is the future of the financial market

CEO of the Robinhood trading platform Vlad Tenev believes that tokenization will be the future of the financial market. The entrepreneur’s words are quoted in a new Fortune report.

“You don’t have to squint too hard to imagine a world where stocks are on blockchains,” Tenev said.

The media writes that several well-known financial companies are studying the possibilities of tokenization. At the same time, many assets, for example, securities, works of art, real estate, have already been tokenized.

According to Tenev, tokenization will be able to eliminate expensive intermediaries from financial transactions.

“The cost of running a crypto business is an order of magnitude lower. There’s just an obvious technology advantage,” said the head of Robinhood.

McKinsey & Company recently concluded that tokenization has reached a tipping point after years of promise and experimentation. Benefits such as programmability, composability and increased transparency can help financial institutions improve operational efficiency, increase liquidity and create new revenue opportunities through innovative use cases for the technology, experts say.

“In the near term, institutions, including banks, asset managers, and market infrastructure players, should assess their product suites and identify which assets would most benefit from transitioning to tokenized products. We suggest questioning whether tokenization can accelerate strategic priorities, such as entering new markets, launching new products, and/or attracting new customers. Are there potential use cases that can create value in the near term? And what internal capabilities or partnerships are required to capitalize on the opportunities created by this shift in the market?” the study’s authors ask.