Original Video Title: Tokenized Stocks, Perps, and Prediction Markets—The Robinhood Crypto Play
Original Video Source: The Rollup
Original Compilation: Deep潮 TechFlow
Editor’s Introduction
In this episode, the podcast features an interview with Johann Kerbrat, Senior Vice President and General Manager of Robinhood’s crypto division. He states that perpetual contracts (perpetuals) are already operational in Europe, and tokenization will be the next breakout point, including bringing US stocks, private equity, and commodities onto the blockchain.
Johann also directly responded to the comparison between Robinhood and Hyperliquid. He believes this is a matter of “licensed centralized” versus “fully decentralized” business models, which are not directly comparable, but HYPE tokens from Hyperliquid can already be purchased on Robinhood.
Key Quotes
The Explosion of Prediction Markets
· “This is a completely new investment approach. Ordinary people previously couldn’t hedge against the Federal Reserve’s interest rate decisions, the future of AI, or which company can develop the best model. Prediction markets and event contracts allow you to hedge your portfolio from these dimensions.”
· “If you want to bet on AI, instead of choosing a stock like Nvidia, AMD, or Microsoft, you can directly buy an event contract related to AI. This is a gameplay that ordinary investors previously had no access to, originally only open to certain institutions.”
· “In our view, trading platforms are basically commodities. Any of our products are integrated into multiple trading platforms—cryptos, stocks, prediction markets follow this logic.”
Perpetual Contracts and Regulation
· “Perpetual contracts are a simpler product in many ways. You don’t need to manage expiration dates, nor worry about specific funding mechanisms; they can be settled continuously.”
· “We have already listed about 12 perpetual contracts in Europe, with leverage up to 10x. We have been in dialogue with the CFTC, and the chairman has repeatedly said this is one of their most concerned issues. Once the US regulatory framework becomes clear, we can list them at any time.”
· “Our stance has always been clear: stablecoin rewards are not the same as FDIC-insured bank accounts or savings accounts. But we also don’t want to punish users who hold stablecoins just for quick transfers between wallets and platforms.”
Tokenization
· “Tokenization will be the next big breakout. It’s difficult for ordinary users to buy international stocks now, and even harder for international users to buy US stocks; crossing continents adds complexity, with many taxes and fewer safe income channels.”
· “We see many people from different countries buying USDC, USDT just for a safe dollar exposure. What stablecoins can do now, in the future, can also be done with commodities, stocks, private equity assets.”
· “Ordinary Americans wanting to invest in private equity either can’t access it because they’re not qualified investors or can’t get good share channels. Tokenization can level the playing field.”
· “Tokenization is the next stage of technological evolution—either adapt or be eliminated. No one wants to go back to the old system.”
Robinhood’s Product Logic
· “We aim to gradually replace some backend legacy systems with crypto-based solutions. In Europe, we have already listed 2,000 tokenized US stocks and ETFs, providing customers with 24/7 trading, fractional shares, real-time settlement—everything that tokenized assets can offer.”
· “Interacting with DeFi protocols for the first time can be a barrier for many. Users have to think about cross-chain transfers, gas fees, etc. But in the Robinhood Wallet, these complex steps are handled in the background, so users don’t need to manage them.”
About Hyperliquid
· “One side is licensed and regulated, the other is fully decentralized; these two are not directly comparable. What we do is centralized—if something goes wrong, you can sue Robinhood or complain to regulators. It’s a different world.”
· “We don’t see each other as ‘old enemies.’ You can now buy Hyperliquid’s HYPE tokens on Robinhood.”
Robinhood’s Super App Vision
Host: Robinhood’s crypto division has grown from an experiment a few years ago to a full-fledged market. Over the past two years, what has been your experience building this business at Robinhood?
Johann Kerbrat: Pretty cool. We started in 2018, during the crypto winter. Many asked us why we bothered launching BTC and ETH. Our idea was simple: we want users to access all the financial products they care about, and crypto is one of them.
Since then, we’ve added many assets, opened staking in most states, implemented transfer functions, launched a self-custody wallet Robinhood Wallet, and went live in Europe. Last year, crypto alone generated over $1 billion in revenue. Now that the market is calmer, we’re refining new features for the next bull run.
Host: You say the market is calm, but prediction markets are booming. I have data showing prediction markets on Robinhood have increased by 320%. Why is there such enthusiasm?
Johann Kerbrat: I think this is a new investment method. Ordinary people previously couldn’t hedge against Fed rate decisions, AI’s future, or which company will produce the best model. Prediction markets and event contracts let you hedge your portfolio from these dimensions.
For example, betting on AI—previously, you could only pick stocks like Nvidia, AMD, or Microsoft. Now, you can buy an event contract about AI directly. This is a gameplay that was previously inaccessible to ordinary investors, originally only open to certain institutions. It’s also one of Robinhood’s fastest-growing businesses, demonstrating the value of our super app—everything in one app, no need to transfer between platforms, from stocks to crypto to event contracts.
Robinhood’s Product Logic
Host: One more question about prediction markets. Given its success and Robinhood’s super app approach, do you plan to deepen vertical integration of prediction markets? Currently, Robinhood has a lot of order flow, but I understand some contracts are settled on other trading platforms. Will Robinhood internalize the market execution process?
Johann Kerbrat: In our view, trading platforms are commodities. Any of our products are integrated into multiple market makers—cryptos, stocks, prediction markets follow this logic. Besides Kalshi, we also work with ForecastEx and have announced a joint venture with CBOE to develop a trading platform focused on the types of event contracts we care about. This is very important for us, ensuring all our products have an outlet.
Host: When integrating these underlying products, could Robinhood be seen as an aggregator of various crypto protocols and products? Coinbase has already done this—they use Morpho for Bitcoin-backed loans (a chain-based lending product in cooperation with Morpho). Users can deposit BTC and borrow stablecoins. I heard you are also integrating Lighter for perpetual contracts (Lighter is a decentralized perpetual trading platform).
What do you think about building a crypto business by combining different product lines and directly leveraging on-chain protocols? Will Robinhood’s crypto business ultimately be a front end that aggregates all on-chain protocols and routes order flow into them?
Johann Kerbrat: That’s exactly what we’ve been doing. That’s why we launched Robinhood Wallet, a self-custody option. The goal is to enable users familiar with Robinhood’s UX to go on-chain and participate in DeFi.
You’re right, interacting with DeFi protocols for the first time can be a barrier. Users have to think about cross-chain transfers, gas fees, etc. But in Robinhood Wallet, these complex steps are handled in the background, so users don’t need to manage them. But we can do more. For example, we haven’t integrated Lighter yet, but we’ve invested in the company, and future plans include building on it.
We also want to replace some backend legacy systems with crypto solutions. In Europe, we’ve listed 2,000 tokenized US stocks and ETFs, providing all the benefits of tokenized assets—24/7 trading, fractional shares, real-time settlement. This is very important: gradually replacing traditional systems with crypto-based ones, bringing these advantages to users. For example, due to time zone differences, European users can’t trade US stocks during market hours, but tokenized stocks are tradable anytime.
US Perpetual Contract Pathway
Host: One of Robinhood’s biggest businesses is options, with about $4 billion traded annually, providing liquidity and market-making. Many in crypto believe perpetual contracts are better than options. Do you agree? If so, why not let users trade perpetuals instead of short-term options? How do perpetual contracts fit into Robinhood’s product ecosystem?
Johann Kerbrat: We already sell perpetual contracts in Europe, where regulation is clear. We’ve listed about 12 contracts with leverage up to 10x. Perpetuals are simpler in many ways: no need to manage expiration, no worries about specific funding mechanisms; they can be settled continuously. This is a major differentiator and why they perform so well. Another reason is that perpetuals can support a variety of products—like commodities on decentralized exchanges in Singapore, which work well because markets don’t close on weekends, and investors want hedging and investment options during crises.
We see perpetual contracts as a very good product. We’re in ongoing discussions with the CFTC about bringing them to the US. Clear regulation is needed, and the chairman has repeatedly said this is a top concern. We remain optimistic that once regulation is clarified, we can list them in the US.
Clarity on Stablecoin Yields
Host: Regarding regulation, your CEO Vlad has been vocal on Twitter about “releasing stablecoin yields,” referring to parts of the Clarity Act concerning stablecoin earnings. Last weekend, there was a significant development: regulators made clearer distinctions between “rewards” and “interest,” effectively assigning interest to banks. Idle stablecoins can’t generate interest directly; users will need to opt-in to earn yields, like clicking a button to deposit into a yield opportunity. How will Robinhood present this on its platform?
For example, as a user holding stablecoins, based on last week’s clarification, will it be something like “earning yields with Robinhood Gold” or “earning interest on Robinhood stablecoins,” which users must actively choose, rather than being default?
Johann Kerbrat: The final implementation depends on the legislation’s outcome. Before the law passes, we will proceed cautiously. But it seems likely we can find a good compromise. Our stance remains clear: stablecoin rewards are not the same as FDIC-insured bank or savings accounts. We have never intended to blur this line. But as you mentioned, Vlad’s view, we also don’t want to penalize users who hold stablecoins just for quick transfers. We hope they can still earn rewards while holding stablecoins. From current developments, there is room to pass some rewards through to users.
If the entire Clarity Act passes, it will be a big win for users, allowing us to develop products nationwide rather than operate state-by-state with different rules. Once the law is enacted, we can unify all products across the US.
Bold Prediction: Asset Tokenization Will Connect Global Markets
Host: I want to ask a broad question. The Clarity Act, stablecoins, prediction markets, perpetual contracts, DeFi—everyone is watching for the next big breakout. What’s your boldest prediction? What do you think will explode at Robinhood or in the entire ecosystem in the next year?
Johann Kerbrat: Tokenization will be the next big breakout. Currently, ordinary users find it difficult to buy international stocks, and international users struggle with US stocks. Crossing continents adds complexity, with high taxes and fewer safe income channels. Stablecoins are an example—many people buy USDC, USDT for a safe dollar exposure. We believe this won’t be limited to currency; commodities, stocks, private equity assets will also be tokenized. Users will not only hold these in their portfolios but also borrow, collateralize, and even use them for mortgage collateral.
These activities are possible in the US for large portfolios, but ordinary investors can’t access private equity easily—either because they’re not qualified or can’t get good shares. Tokenization can democratize access.
Host: I’m particularly interested in how fast this can happen. For example, the Korean stock market is booming, but on-chain trading isn’t available. Also, some US AI pre-IPO stocks are now accessible, but many Chinese AI pre-IPO shares are still unavailable. How quickly can you advance this? As tokenization heats up, how fast can Robinhood list tokenized assets across jurisdictions? How much friction is there in launching a new tokenized asset?
Johann Kerbrat: It depends on assets and regulation. But overall, we have a tech stack built over the past decade. I believe our engineering team is among the best in Silicon Valley. As long as regulators give the green light, we can move quickly. For example, Robinhood is one of the brokers embedding AI systems most deeply. When you open a token or stock detail page, you’ll see a market summary—one of the most requested features. Users get notified of price changes and want to understand why. We also built Cortex Assistant, which can discuss strategies and suggest improvements. These show that once Robinhood decides to do something, it can be implemented rapidly.
Host: Regarding tokenization, DTCC (the US securities depository and clearing house) recently announced a tokenization service, with over 50 companies involved, including Robinhood, planning to launch by October 2026. What does this DTCC tokenization service mean for Robinhood?
Johann Kerbrat: Collaborating with such institutions has always been important for us. We’ve long advocated for faster settlement—T+1 is too slow; we need 24/7 trading. We support any push in that direction. But fundamentally, tokenization is the next phase of technological evolution—either adapt or be left behind. No one wants to go back to the old system. These companies need to realize that they should start building products based on this technology.
Robinhood and Hyperliquid
Host: Many on Twitter compare Robinhood and Hyperliquid—revenue, valuation, user base, scale. What’s your view on Hyperliquid’s rise as a fully on-chain perpetual contract stack? They aim to create a chain-based price discovery hub, bringing off-chain prices on-chain. What does this mean? Is Hyperliquid a competitor to Robinhood’s crypto future, or do you not see them as a concern?
Johann Kerbrat: From our perspective, these are two different businesses. One is licensed and regulated; the other is fully decentralized. They can’t be directly compared. I appreciate that many people are getting exposure to new assets like perpetuals through them. We’re also working in this space, but differently—we’re centralized. If something goes wrong, you can sue Robinhood or complain to regulators. It’s a different world. But, to be fair, you can now buy HYPE tokens on Robinhood. We don’t see each other as ‘old enemies.’ We think they have a great team, and we wish them luck.
Host: So, are you optimistic or cautious?
Johann Kerbrat: Not necessarily optimistic or cautious—just that you can buy.
Original Link
Click to learn about BlockBeats’ job openings
Join the official BlockBeats community:
Telegram Subscription Group: https://t.me/theblockbeats
Telegram Group: https://t.me/BlockBeats_App
Twitter Official Account: https://twitter.com/BlockBeatsAsia
