Robinhood CEO Says GameStop Incident Was a Wake-Up Call for Tokenization

In brief

• Robinhood CEO Vlad Tenev says tokenization could have prevented the 2021 GameStop buying halt, blaming outdated settlement infrastructure.
• Experts say traditional brokerages handled similar surges, and Robinhood’s failure stemmed from inadequate capital reserves and risk management.
• Recent SEC guidance states that tokenized assets still require the same collateral and settlement controls as traditional securities.