Robinhood CEO Vlad Tenev believes crypto can modernize traditional finance by addressing inefficiencies in the traditional financial infrastructure.
Crypto can solve legacy inefficiencies in traditional finance by revolutionizing how financial services are offered and delivered, Robinhood chief executive Vlad Tenev told CNBC.
In a Sept. 11 interview, Tenev said cryptocurrency has the potential to revolutionize traditional finance, positioning it as a long-term infrastructure upgrade for financial services. He emphasized that blockchain technology could address inefficiencies in collateralized lending, trading, market making, and settlement processes.
Crypto offers an infrastructure upgrade and a shift in how financial services are offered and delivered.
Vlad Tenev
He noted that the decentralized nature of blockchain technology holds the potential to resolve many of the challenges embedded in the U.S. financial infrastructure.
Robinhood bets big on crypto adoption in US
Tenev’s remarks come amid crypto global adoption as highlighted in Gemini‘s newly released “2024 Global State of Crypto” report. The report, based on a survey of 6,000 participants across five countries, revealed that adoption in the U.S. and the U.K. remains consistent at 21% and 18%, respectively. France saw a modest increase in crypto ownership from 16% to 18%, while Singapore experienced a slight decline from 30% to 26%, according to the report.
Despite regulatory concerns, the retail market shows signs of a rebound, 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 U.S. “will continue to embrace the technology.”
Robinhood recorded a profitable second quarter in 2024, with a 40% increase in revenue year-over-year, totaling $682 million, propelled by renewed interest in crypto trading. As crypto.news reported, the firm’s crypto transaction-based revenues hit $81 million, accounting for a 161% increase compared to the same period last year.
Read more: Robinhood to launch crypto futures in the U.S. and Europe