Tenev argued that focusing solely on possession construction misses the broader market-structure shift. Tokenized belongings can doubtlessly commerce across the clock, settle in actual time and transfer between suitable wallets and platforms with out counting on the switch programs utilized by conventional brokers.
For Tenev, the strongest case is settlement.
He pointed to the 2021 GameStop (GME) buying and selling frenzy, when Robinhood restricted purchases of some shares after clearinghouse collateral calls for surged. The episode has remained central to Tenev’s argument that legacy settlement infrastructure can create acute stress in periods of market stress.
“On the blockchain, Inventory Tokens can commerce, settle, and transfer in actual time. Actual-time settlement means a lot much less danger and stress on the system, significantly in instances of extreme market stress,” Tenev mentioned.
U.S. inventory settlement has since moved from two enterprise days to 1, referred to as T+1. Tenev argued that tokenization might additional cut back that delay, thereby decreasing the chance and collateral necessities that come up between a commerce and its settlement.
He additionally mentioned tokenization might tackle two different longstanding frictions in conventional markets: restricted buying and selling hours and cumbersome asset transfers.
Robinhood at the moment affords 24/5 inventory buying and selling within the U.S., however Tenev mentioned blockchain infrastructure might make 24/7 buying and selling native slightly than requiring brokers to attach a number of exchanges and different buying and selling programs.
