TechFlow news: Robinhood co-founder and CEO Vlad Tenev recently highlighted the significant cost advantages of operating a business using blockchain technology and expressed confidence in the future of asset tokenization.
Tenev stated that running a cryptocurrency business is an order of magnitude cheaper than traditional operations, thanks to leveraging extensive public infrastructure, with public blockchains handling much of the work in settlement and transactions. He believes there is a clear technological advantage in moving more services onto blockchain infrastructure. Tenev likened this shift to the evolution from mainframes to on-premises systems and then to cloud computing, predicting the next transformation in financial services will be the trading and custody of more traditional financial products—such as fixed income and equities—on blockchains.
Given that a substantial portion of Robinhood's current revenue comes from interest, some observers speculate the company may launch a stablecoin.
Tenev emphasized that once people recognize the massive efficiency gains offered by blockchain technology, crypto as a technological application will accelerate. Notably, Robinhood agreed in June this year to acquire international cryptocurrency exchange Bitstamp for approximately $200 million.
