Important points
- Blockchain technology offers significant improvements over traditional financial systems, including 24/7 trading and instant payments.
- Robinhood is focused on building an open developer ecosystem that fosters innovation and collaboration.
- Emerging markets present high-yield opportunities that are currently inaccessible to DeFi, presenting them as a potential growth area.
- BRX bridges decentralized finance and institutional-level tokenization to enhance real-world yield access.
- Robinhood Chain’s certification process ensures compliance with regulatory and customer protection standards.
- Following developer feedback from the hackathon, Robinhood’s main net launch is expected to take place soon.
- Tokenized assets and real-world assets are expected to become the primary focus of blockchain financial applications.
- The Clarity Act aims to create a uniform regulatory framework for crypto products across the United States.
- Robinhood is expanding its services to serve both individual and institutional customers, marking a strategic shift.
- The liquidity challenges of tokenized securities limit their use in DeFi, but solutions such as order routing can optimize liquidity.
- The introduction of stock tokens will improve accessibility and create new lending solutions.
- The stablecoin market needs regulation that focuses on finding the right compromises between stakeholders.
Guest introduction
Johann Kerbrat is the Senior Vice President and General Manager of Robinhood Crypto. Prior to joining Robinhood, he was VP of Engineering at Iron Fish, a layer 1 blockchain project focused on privacy. Under his leadership, Robinhood Crypto acquired Bitstamp and launched tokenized US stocks and ETFs in Europe.
Blockchain’s transformative potential
Blockchain technology can fundamentally improve traditional financial systems.
— Johann Kelblatt
- Unlike traditional systems, blockchain enables 24/7 transactions and instant payments.
It does not work 24 hours a day, it is not possible to buy stocks and settle them immediately, and all this has already existed in cryptocurrencies for a long time.
— Johann Kelblatt
- The limitations of traditional financial systems can be addressed through blockchain capabilities.
Crypto and blockchain are technologies that can be used not only to trade off assets, but also to replace financial systems.
— Johann Kelblatt
- It is important to understand the advantages of blockchain over traditional stock trading.
- The transformative potential of blockchain in finance is highlighted by its ability to improve efficiency.
- The role of blockchain in the future of the financial system is important and growing.
Robinhood’s open developer ecosystem
Robinhood has chosen to build an open developer ecosystem rather than a closed, siled system.
— Johann Kelblatt
- This strategic choice will impact the development and implementation of blockchain technology in finance.
It doesn’t make much sense to just build it in a corner of a small room.
— Johann Kelblatt
- An open ecosystem fosters innovation and collaboration among developers.
- Understanding Robinhood’s strategic direction is key to understanding its blockchain efforts.
- Open ecosystems contrast with traditional closed systems and offer a broader range of opportunities.
- Robinhood’s approach could lead to increased adoption of blockchain technology.
- The focus on open ecosystems aligns with Robinhood’s innovative efforts in digital assets.
Bridging DeFi and traditional finance
- BRX combines decentralized finance with institutional-grade tokenization and real-world yield.
BRX connects these worlds with cross-jurisdictional, institution-level tokenization local banking rail compliance.
— Johann Kelblatt
- This integration will enhance DeFi’s access to real collateral and structured products.
- Tokenized assets and real-world assets are becoming a major focus in financial applications.
We are strong believers in equity tokenization, which is the tokenization of real-world assets.
— Johann Kelblatt
- BRX’s role in bridging DeFi and traditional finance is innovative and important.
- Understanding the integration of DeFi and institutional finance is critical to future trends.
- The move towards tokenization in finance marks the evolution of blockchain applications.
Regulatory compliance and innovation
- The certification process for applications on the Robinhood chain ensures compliance with regulatory requirements.
You must ensure that you meet all customer protection and regulatory requirements.
— Johann Kelblatt
- Balancing innovation and regulatory compliance is a key focus for Robinhood.
- Huge opportunities for development exist in the early days of blockchain and cryptocurrencies.
We are in the very early stages of blockchain and cryptocurrencies.
— Johann Kelblatt
- Fostering creativity is essential in the evolving landscape of blockchain technology.
- Robinhood’s approach to compliance reflects our commitment to protecting our customers.
- Understanding the regulatory landscape is important for navigating the cryptocurrency space.
Main online launch and tokenization strategies
- After gathering developer feedback, the mainnet launch will occur soon.
There usually isn’t that much time between the two sessions.
— Johann Kelblatt
- Different companies are pursuing different strategies for tokenization.
You will see different chains and different ways to tokenize your products.
— Johann Kelblatt
- Development timelines and the importance of developer feedback are critical in blockchain.
- Tokenization strategies represent a competitive and innovative environment in the market.
- The main net launch is an important milestone in Robinhood’s blockchain efforts.
- Understanding tokenization strategies is key to understanding market dynamics.
Innovation and accessibility of tokenized assets
- Innovation in tokenized assets is expected to return to the US with new regulations.
Many of the innovations happening outside the United States will come back.
— Johann Kelblatt
- Robinhood has expanded its offering from 200 to over 2,000 stock tokens.
We started with 200 stock tokens in June and now have over 2,000.
— Johann Kelblatt
- The scalability of Robinhood’s tokenization engine demonstrates its adaptability.
- The regulatory landscape in the US and EU will impact innovation in tokenized assets.
- It is important to understand the growth strategy and the importance of tokenization.
- The expansion of equity tokens highlights Robinhood’s technological effectiveness.
Liquidity challenges and solutions
- The liquidity issue of tokenized securities is fundamental and limits their use in DeFi.
The issue of liquidity is a very fundamental problem for those trying to manage on-chain stocks and tokens.
— Johann Kelblatt
- Market segmentation leads to liquidity segmentation.
As markets become more fragmented, so too does liquidity.
— Johann Kelblatt
- Order routing allows you to optimize liquidity in fragmented markets.
- Understanding the relationship between liquidity and tokenized securities is critical.
- Solutions such as order routing address market liquidity challenges.
- Liquidity issues are a significant barrier to the adoption of tokenized securities in DeFi.
Robinhood cryptocurrency trading strategy
- Robinhood connects with multiple market makers and exchanges to ensure you get the best crypto trading prices.
We connect to multiple market makers, multiple exchanges and find the best prices.
— Johann Kelblatt
- The introduction of equity tokens will lead to increased accessibility and new lending solutions.
You’ll see more financing solutions, more borrowing solutions.
— Johann Kelblatt
- The future of financial markets includes a mix of public and private assets as collateral.
It’s not just about public stocks, it’s about different types of private stocks.
— Johann Kelblatt
- Understanding Robinhood’s pricing strategy is critical to being competitive.
- The potential evolution of financial services is illustrated by the introduction of equity tokens.
Robinhood wallet and user controls
- Robinhood Wallet gives users control over their assets while maintaining ease of use.
We launched this wallet that looks a lot like Robinhood.
— Johann Kelblatt
- This wallet is targeted at both casual users and advanced users looking for greater control.
Some of them spend their days not paying much attention to virtual currencies.
— Johann Kelblatt
- When it comes to cryptocurrency wallets, it’s important to understand the balance between user experience and control.
- Robinhood Wallet’s targets are two-fold, highlighting its broad appeal.
- The design philosophy behind Robinhood Wallet focuses on user control and ease of use.
- This wallet’s appeal to both casual investors and experienced users reflects its versatility.
Regulatory status and transparency laws
- The Clarity Act aims to create a uniform regulatory framework for crypto products in the United States.
It’s about setting a level playing field for everyone.
— Johann Kelblatt
- The current regulatory environment is frustrating because of the lack of consistency across states.
It was very difficult to provide a unified experience.
— Johann Kelblatt
- The Clarity Act addresses regulatory disparities that impact the customer experience.
- Understanding the fragmented regulatory landscape is critical for customers to access cryptocurrencies.
- It highlights the need for regulatory reform to improve customer access.
- The importance of transparency laws lies in their potential to stabilize the regulatory environment.
Strategic partnerships and market expansion
- Scams are rampant in the cryptocurrency industry, so long-term partnerships are extremely important.
This is especially important in cryptocurrencies where we know that so many things remain scams.
— Johann Kelblatt
- Robinhood’s roadmap includes both short-term and long-term plans for product development.
We have different ideas about it…I think it’s going to take five years.
— Johann Kelblatt
- Robinhood is actively pursuing mergers and acquisitions in the cryptocurrency space.
You know we think a lot about M&A and we’ve done some things with cryptocurrencies.
— Johann Kelblatt
- In a volatile industry, understanding the importance of trusted partnerships is critical.
- A strategic focus on M&A activity highlights Robinhood’s growth strategy.
Continuous transactions and regulatory challenges
- The market for perpetual transactions is small and shows significant growth potential.
The number of people trading perp is still a small percentage.
— Johann Kelblatt
- Due to regulatory challenges, perpetual contracts are not widely recognized in the United States.
Perpetual is a product that is not actually allowed in the United States.
— Johann Kelblatt
- A new chairman of the CFTC could lead to regulatory changes affecting U.S. crypto exchanges.
A lot of it is spilling offshore, so we’re hoping we’ll find something there.
— Johann Kelblatt
- It is important to understand the regulatory landscape that affects perpetual contracts.
- The importance of specific financial products in maintaining market competitiveness is highlighted.
