Robinhood’s Tenev says crypto can solve tradfi legacy issues

Robinhood CEO Vlad Tenev believes that cryptocurrencies can modernize traditional finance by addressing inefficiencies in traditional financial infrastructure.

Robinhood CEO Vlad Tenev told CNBC that cryptocurrencies could revolutionize the way financial services are offered and delivered, solving long-standing inefficiencies in traditional finance.

Cryptocurrency has the potential to revolutionize traditional finance, positioning it as a long-term infrastructure upgrade for financial services, Tenev said in an interview on Sept. 11. He emphasized that blockchain technology can address inefficiencies in collateralized lending, trading, market making and settlement processes.

Crypto is enabling an upgrade of infrastructure and a shift in the way financial services are offered and delivered.

Vlad Tenev

He stated that the decentralized nature of blockchain technology has the potential to solve many challenges in the US financial infrastructure.

Robinhood is betting big on crypto adoption in the US

Tenev’s comments come amid the global adoption of crypto, as highlighted in Gemini’s newly released “The Global State of Crypto 2024” report. The report, which was based on a survey of 6,000 respondents across five countries, found that adoption in the US and UK remained consistent at 21% and 18%, respectively. France saw a modest increase in crypto ownership from 16% to 18%, while Singapore saw a slight decrease from 30% to 26%, according to the report.

Despite regulatory concerns, the retail market is showing signs of recovery, with two-thirds of crypto holders viewing it as a long-term investment. While regulatory clarity remains a concern, Tenev remains optimistic, predicting that the US will “continue to embrace the technology.”

Robinhood has reported a profitable second quarter in 2024, fueled by renewed interest in crypto trading, with revenue up 40% year over year to reach $682 million. The firm’s crypto trading-based revenues reached $81 million, representing a 161% increase compared to the same period last year, Crypto.news reported.