$70 trillion wealth transfer, the financial gateway is being rewritten | Interview with Robinhood CEO Vlad Tenev

Author: Payment201

The next key competition in the financial sector may no longer revolve around stocks, cryptocurrencies, or even payments, but rather around where the $90 trillion "intergenerational wealth transfer" will ultimately flow.

In this episode, Vlad Tenev (founder and CEO of Robinhood) returns to Bankless for a fast-paced conversation focusing on:

• How Robinhood is strategically positioning itself for this intergenerational wealth transfer

• Why he believes that 24/7 markets and asset tokenization will become inevitable trends

• And why the mainstream narrative of "Gen Z financial irresponsibility" does not align with the reality he observes on the platform

Takeaways:

1. The intergenerational wealth transfer of approximately $70-$90 trillion over the next 10-20 years is one of the most certain structural dividends for the financial industry. Robinhood's core strategy is not to be a trading tool but to become the "default destination" for this wealth transfer, essentially competing for the next generation's asset entry point.

2. Robinhood is upgrading from a "zero-commission brokerage" to a "full-asset account platform," covering the storage, consumption, investment, and inheritance of funds through products like banking (checking/savings), credit, retirement accounts, trusts, and custodial accounts, achieving comprehensive account-level penetration.

3. Before the wealth transfer occurs, Robinhood's key strategy is "bilateral penetration": serving young users on one hand while attracting older users with existing assets through product capabilities, thus facilitating natural asset migration during the generational handover.

4. 24/7 trading and asset tokenization are seen as certain evolutionary directions. The essence is not to enhance trading hours but to reconstruct market infrastructure, allowing all assets (especially private assets) to have continuous liquidity and global accessibility.

5. The true value of tokenized stocks lies not in "trading stocks on-chain" but in bridging CeFi and DeFi, enabling stocks to participate in on-chain financial activities such as collateralization, lending, and portfolio management, ultimately extending to private equity.

6. Robinhood is building a dual-driven model of "CeFi distribution + DeFi infrastructure": the front end gathers users through the App and Wallet, while the back end supports assets and protocols through Robinhood Chain, forming an integrated ecosystem similar to "exchange + public chain."

7. Prediction markets are being redefined as "information infrastructure," with their core value in providing probabilistic, market-driven "truth pricing mechanisms," partially replacing traditional media's information distribution function, rather than merely serving as trading or gambling tools.

8. There is a deviation in the mainstream narrative regarding "entertainment finance." Actual data shows that a significant amount of user assets have entered long-term allocation products like ETFs and retirement accounts, with user behavior reflecting a structure of "long-term investment as primary + strategic trading as secondary," rather than outright speculation.

9. The core of the next phase of competition is not just super apps but "intelligent asset management entry points": unifying management of trading, savings, and allocation through AI agents, evolving into a system-level financial service model similar to personal family offices.

Host:

Gen Z is actually the generation that understands retirement savings the most and has the strongest long-term investment awareness.

Host:
Wait, is that true?

Vlad:
Yes, it is true. They are opening retirement accounts at an earlier age than any previous generation. I saw data indicating that the average age for Gen Z to open their first retirement account was 19. It may have risen slightly now, but it's likely still just over 20. In contrast, other generations typically start around age 25.

Host:
Friends at Bankless, today we have again invited Vlad Tenev, the founder and CEO of Robinhood. Vlad, welcome back.

Vlad:
I'm glad to be here again, thank you.

Host:
We have prepared a 60-minute "rapid-fire" session for you today. Are you ready for a full hour of intense questioning?

Vlad:
Oh my, I feel like I've been thrown into the ring (laughs). Okay, I'm ready.

Host:
Great, let's dive right in, starting with the "great wealth transfer." In the coming decades, there will be a massive intergenerational wealth transfer in the U.S.: the wealth of the Baby Boomers and Silent Generation will gradually be passed on to Generation X, Millennials, and Gen Z. In the U.S. alone, approximately $70 trillion to $90 trillion in assets will be transferred over the next 20 years. This could be the largest wealth transfer in history.

How important is this trend to Robinhood's strategy? How frequently do you think about this $70-$90 trillion opportunity? Or are there other core strategies driving you?

Vlad:
We do place a lot of importance on this trend. More and more companies are starting to discuss the "great wealth transfer," but earlier, it was mainly a topic discussed by economists and small circles.

If we trace back to when it became a mainstream fintech topic, I think we can point to last year—when we launched Robinhood Banking at the Gold event.

From a high-level perspective, our positioning for Robinhood is: we want to serve all customers—whether individuals, businesses, or institutional clients; whether in the U.S. or international markets. Robinhood should be the place where "all your funds and assets can be best managed."

At the same time, we want the process of moving money in and out of Robinhood to be simple: depositing should be easy, and withdrawing should also be easy. Internally, we view every outflow of funds as a "system defect" or "opportunity for improvement."

During this intergenerational wealth transfer, when the previous generation begins to inherit and pass wealth to the younger generation, we not only want to serve these older clients but also hope to create a complete product system that makes users realize that "putting money on other platforms is actually a disadvantage."

This has profoundly influenced our entire product roadmap.

For example:
We launched credit and banking services to reach assets that were previously sitting in checking/savings accounts and to tap into users' daily spending flows.
Additionally, this year we launched custodial accounts and trust accounts, continuously expanding the types of assets on the platform.

These products allow us to serve the youngest users (who are just receiving assets) while also reaching the largest mature user group with existing asset scales.

So, we are not just "waiting" for users to inherit wealth; we are simultaneously serving the parents and grandparents' generation, making them clearly aware that continuing to use other financial platforms is a disadvantage.

I believe this will position us very favorably when the wealth transfer truly peaks in the next 8 to 10 years.

Host:
Now let's fast forward to 8 to 10 years from now. The financial industry has indeed undergone many changes in the past 15 years, but in some ways, it seems not to have changed that much. What do you think the financial system will look like in 2040? What will change, and what will not? For example, will there be 24/7 markets? What role will AI play?

Vlad:
I believe that 24/7, year-round markets will definitely emerge.

In fact, we started pushing for "24-hour trading" in the stock market back in 2022, and now you can see the entire industry following suit, with many exchanges planning to implement round-the-clock trading, including weekend openings.

The technology is basically ready; there are just some engineering tasks to complete, but I believe this change will happen well before 2040.

Another key trend is asset tokenization.

Last year, we held a launch in France where we introduced a large number of tokenized versions of U.S. stocks, and we have now expanded to thousands of stocks. We also conducted giveaways of tokenized stocks for companies like OpenAI and SpaceX.

We are still in the early stages, but I expect that by the end of this year, tokenized stocks will start to show significant advantages in certain aspects, even outperforming the trading experience of traditional brokerage accounts.

If we can further solve the "24/7 liquidity issue for private equity," that is actually the most challenging part of the whole issue. Once that is resolved, you can achieve around-the-clock trading for almost all assets.

Host:
Regarding tokenized stocks, you have already launched thousands in Europe, and you have also introduced your own Layer 2 (Robinhood Chain), but U.S. users still cannot use this product. With the changing stance of the SEC, how far are you from bringing tokenized stocks to the U.S. market? Are you creating a system similar to the New York Stock Exchange, or is it something completely different?

Vlad:
This tech stack actually consists of two parts.

One part is CeFi (centralized finance): for example, trading these tokenized stocks on Bitstamp or other centralized exchanges.
The other part is DeFi: users can perform exchanges, lending, and other operations in non-custodial wallets. We are promoting the use of these tokenized stocks on Robinhood Chain and other chains.

So we are pursuing both paths simultaneously.

We do not view it as "competing with a specific traditional exchange." It is essentially a brand new system. A closer analogy would be the current crypto ecosystem: you can do collateralized lending, trading, and portfolio strategies—but most of these operations currently occur on tokens without real underlying assets.

So what happens if these tokens are tied to real-world assets? The experience would be similar but better, because you are trading assets with real fundamental value, not meme coins.

As for the U.S. market issue, the core is not just regulation but also a more practical problem: the U.S. already has a very mature market structure.

While it is not 24/7 yet, it is close to 24/5, and costs are continually decreasing. In a sense, the U.S. is "90% close to a final state."

So the question becomes: what is the "additional value" of tokenization? Can users truly understand it?

Therefore, we judge that markets outside of Europe and the U.S. will run through first, and then some successful models will gradually be introduced to the U.S.

Host:
You just mentioned decentralized finance (DeFi). Now exchanges like Coinbase and Kraken are expanding what they call "DeFi mullet" (compliance finance in the front, DeFi in the back). For example, integrating lending protocols like Morpho through CeFi or DeFi interfaces.

Even BlackRock is gradually entering DeFi; their BUIDL fund has already launched and is deploying on Uniswap.

What is your overall strategy for DeFi at Robinhood? On one hand, it resembles "Westworld," being open, permissionless, and highly innovative, but it also carries risks; on the other hand, it is indeed the biggest differentiation that crypto can bring to the financial system.

What is your view on this direction?

Vlad:
Our strategy is actually "full stack."

For the entire ecosystem to operate, we first need a large number of users. So through the Robinhood App and the increasingly important Robinhood Wallet, we are focusing on "distribution," bringing users in.

On the other end, we are building infrastructure—including CeFi and DeFi.

On the DeFi side, we launched Robinhood Chain, and the testnet is performing very well, with developer participation and application ecosystem growth exceeding our expectations.

Initially, I thought the most conservative scenario would be that this chain could at least be used to carry our own products, tokenizing these assets and providing them to users. Even if it were just that, it would still become a very large chain.

But now we see that developers are genuinely willing to integrate and build products on it, and they are doing so quickly. So the question has become: how do we "curate"?

In the future, there will be thousands of products on-chain that may seem similar on the surface, but the risk structures and underlying mechanisms will vary greatly. We need to ensure that the highest quality products can be guided to our CeFi interface, making it easier for users to use.

Host:
Let's talk about prediction markets. This area has been growing rapidly recently, even beyond our expectations.

Supporters believe it is an "information market" or "truth machine"; however, there are opposing voices that say it is essentially gambling and could lead to manipulation and addiction issues.

What is your view? Is this a good thing or a bad thing?

Vlad:
I think it is a good thing.

Many people overlook one point: the trading volume in prediction markets is actually much smaller than that of stocks or options markets. But its more important value lies in being an "information mechanism."

More and more Americans are starting to use prediction markets to determine what is real and what is more likely to happen. In the past, people relied on news media, but the media's business model has shifted away from "rapidly delivering real information" to focusing more on "extending user engagement and increasing ad exposure."

This has left a gap—if I want to know "what the facts are," where should I go?

Prediction markets fill this gap well. I believe they will continue to grow and penetrate more scenarios.

Host:
Will Robinhood layer content and social features on top of prediction markets? For example, combining trading, opinions, and discussions like Stocktwits or X.

Vlad:
Yes, that is also something we are working on.

We announced Robinhood Social at the Hood Summit, and it will be launching soon. Prediction markets will be an important component of it, allowing users to see how others are trading and commenting on these events.

I strongly believe in user-generated content (UGC). You cannot rely on manual curation to capture all information, but if millions of users are participating in the market, they will naturally "surface" the most important information.

Of course, we will also work on the content layer, which is Sherwood Media—our media business that produces high-quality content daily and increasingly integrates with prediction markets.

Host:
There is a trend called "entertainment finance." Young people seem to treat investing as entertainment, such as meme coins and prediction markets.

Do you think this is a trend? Should platforms encourage it?

Vlad:
I actually have an opposite view.

I do not believe "entertainment" is dominating financial activities. What is really happening is that the non-entertaining aspects are not being discussed.

For example:
No one discusses how quickly retirement accounts grow on X.
No one posts about how stable ETF allocations are.

So what you see is just the "more eye-catching" parts, creating an illusion that the entire financial landscape is turning into speculative entertainment.

But from the data, the situation is completely different. On our platform, 40% of assets are already in passive products (ETFs, cash, retirement accounts), and this proportion is still rising.

Even the most active traders usually have multiple accounts: one for trading and one for long-term investing.

So the reality is: the same person is simultaneously doing "trading" and "long-term allocation."

Host:
This is actually completely contrary to the mainstream narrative. Everyone is saying Gen Z is gambling and lacks long-term planning.

Vlad:
That is not the case at all. Gen Z is the most long-term investment-aware generation we have seen. They start investing earlier and are more systematic.

Additionally, many people categorize "active trading" as gambling, which is incorrect. Some individuals are very systematic and strategy-driven traders; they are looking for mispricing, building models, and developing strategies, which is completely different from emotional betting.

Host:
Why is that? Is it because the tools have become easier to use?

Vlad:
Yes, access is key.

Opening a retirement account used to be very complicated; you had to meet with an advisor and fill out forms. Now it can be done in just a few steps.

There are also incentive mechanisms, such as offering Gold users a 3% match on retirement accounts.

Another trend is that more people are freelancers and do not have traditional 401(k) plans, so they need to manage their retirement savings themselves.

These factors combined are driving this change.

Host:
Let's talk about super apps. Now X is doing payments, Coinbase has launched stocks, and everyone is creating "financial super apps."

But the problem is: different user needs vary greatly. Can this really work?

Vlad:
I think it can, but the definition needs to be more flexible.

For example, we actually already have multiple apps:
Robinhood main app (trading)
Robinhood Banking (banking)
Robinhood Wallet (on-chain)

In the future, we will provide stronger personalization while retaining these "sub-apps."

Another important direction is: agents (AI agents). In the future, users may operate financial services through AI, and we need to ensure we can excel in that world as well.

Host:
But you haven't done P2P payments, like Venmo or Cash App.

Vlad:
We have actually tried, but it did not work well.

The reason is: our users are not the type who are "cash flow tight"; they lean more towards credit card and investment users, and their demand for these features is not strong. Moreover, P2P has already matured; unless we can do it significantly better, we won't rush into it.

Host:
What about stablecoins?

Vlad:
Stablecoins serve two scenarios:

1. Store of value
2. Payment rail

The first issue is: it has to compete with FDIC insurance. U.S. users place a high value on fund safety, and stablecoins experienced a de-pegging in 2023, which significantly impacted trust.

The second issue is: the consumption scenario does not hold. You wouldn't use stablecoins to treat a friend to dinner, nor would you pay with stablecoins on Amazon.

However, it already has value in B2B, large payments, and weekend settlement scenarios.

So we will continue to support it, such as USDG (in partnership with Paxos), but consumer-grade applications will need time.

Host:
Let's continue discussing payments, stablecoins, and the banking system. Recently, there was a rather "landmark" event: Kraken obtained what is called a "skinny master account," allowing direct access to FedWire for settlement.

From your perspective, is this type of license attractive to Robinhood? Or have you already achieved similar capabilities through partner banks? Is this a true paradigm shift?

Vlad:
I actually don't see it that way.

Users can already do wire transfers in Robinhood today. I haven't studied the details of this license deeply, but it sounds more like a way to "reduce costs."

However, we wouldn't apply for a banking license just to access the settlement system more cheaply.

Indeed, a banking license has its advantages. We actually tried to apply for an OCC national bank license in 2019 but later withdrew.

The reason is: we found that the "bank partnership model" has become very mature.
APIs and service capabilities are rapidly improving, and community banks are actively seeking fintech clients.

Now we are collaborating with banks like Coastal, which are also competing with large banks, allowing us to focus on what we do best without having to bear the complex burden of a banking license.

So for now, this partnership model is the optimal solution for us. Of course, we cannot completely rule out changes in the future.

Host:
Speaking of the relationship between banks and crypto, one of the biggest friction points is actually regulation.

For example, the Clarity Act, where a key sticking point is: who should receive the yield from stablecoins.

Banks want to restrict it, while the crypto industry (like Coinbase) wants to give the yield to users.

What is your view on this issue?

Vlad:
I think the current debate has somewhat "missed the mark."

Because the yield from stablecoins was not originally the core issue of the Clarity Act. The Clarity Act was primarily about market structure, asset classification (securities vs. commodities), and tokenization.

But now, due to the rapid progress of the previous GENIUS Act, many stakeholders have not had time to react, so they are trying to "remedy" this in the current bill.

Personally, I believe the best path is to set aside the stablecoin issue for now and prioritize advancing DeFi and market structure, which are more core issues.

Otherwise, we might get bogged down by stablecoin controversies and miss the entire legislative window.

Host:
If the Clarity Act passes smoothly, what specific impact would it have on you?

Vlad:
The biggest value would be "clarity."

Currently, for any token we list, we have to spend a lot of effort making legal judgments: is it a security? Is there risk? If there were a clear set of rules, these costs would be significantly reduced.

The second point is tokenization.
Once the rules are clear, traditional assets can be moved onto the chain on a large scale.

Another crucial point is: once it is written into law, it will not fluctuate with changes in regulatory personnel. This is very important for the industry.

Host:
If two scenarios occur:

1. The bill passes
2. The bill does not pass

Would it significantly impact your strategy?

Vlad:
It would not affect whether we invest in Robinhood Chain.

Because the chain itself is a global product and is permissionless.

What is truly affected is which products can be offered in the U.S.

If U.S. regulation is unclear, we will lean more towards international markets (like Europe). If it is clear, we will increase our investment in the U.S.

You can already see us balancing this: internationalization on one side while preparing for the U.S. market on the other.

Host:
I was at your launch event in France, and almost all products were labeled "for European users only." As an American, I started to feel a bit envious of Europe (laughs).

But now the situation is changing; for example, the CFTC is pushing for perpetual futures to land in the U.S. Are you ready for that?

Vlad:
We are ready, and we can do it very quickly. We already have futures products and have launched perpetual contracts in Europe through Bitstamp. From a technical and product perspective, we are already full stack, and as soon as regulation is clear, we can launch quickly.

Host:
Let's discuss a pain point that many people share: ordinary investors cannot access quality private equity, such as Stripe, SpaceX, and Anthropic. Is this a structural issue? Is there a possibility for change?

Vlad:
This is a direction we take very seriously.

For example, our Robinhood Ventures:
We have already invested in Stripe, Databricks, Ramp, Revolut, Airwallex, and others.

Currently, we are focusing on "later-stage projects + fund structures," but in the future, we will move towards earlier stages.

In the long run, I believe the end state is:
Retail investors can participate in seed rounds and Series A financing.

Of course, this will take time, but tokenization is also a key path.

Host:
We just discussed the younger generation and wealth transfer topics. I want to add a real pain point for many Millennials and Gen Z: we cannot access many quality growth assets.

For example, Stripe, SpaceX, Anthropic—ordinary investors cannot participate when these companies have the most growth potential. You launched Robinhood Ventures, which has indeed solved this problem to some extent, but overall, this remains a structural issue.

Is there a possibility for change? What needs to happen for retail investors to truly participate in investments in these private companies?

Vlad:
I believe Robinhood Ventures is an important first step.

We have participated in several projects through this fund, such as Stripe (which is currently signed but not yet settled), Databricks (we participated in the last two rounds), Boom (the supersonic plane company), Mercury, Revolut, Ramp, Airwallex, and Aura (the ring I am wearing now is their product).

These investments are actually completed through funds raised from IPOs, and we will continue to do so, with more funds to come in the future.

Currently, this fund is more focused on later stages (pre-IPO), but in the future, we will gradually move towards earlier stages—higher risk but also greater potential returns.

You can understand the evolution of our path like this:

Step 1: Allow retail investors to participate in IPOs (we are now one of the largest retail channels for IPO allocations)
Step 2: Allow retail investors to indirectly participate in pre-IPO through funds
Step 3: In the future, enable retail investors to directly participate in earlier financing

In the long run, I believe the end state is: if you are a startup raising seed or Series A financing, retail investors will become an important source of funding.

Of course, we are not there yet, but we are moving in that direction.

Additionally, you can see what we are doing in Europe—tokenization of private assets. I believe that may be the ultimate form, but a lot of work is needed to achieve it.

In the transitional phase, fund structures may be the most realistic way.

Host:
Vlad, this has been a great conversation. Robinhood has seized two major opportunities in the past:

First, zero-commission trading, which changed the entire brokerage industry.
Second, crypto, where you entered heavily while the industry was still in its early stages.

Your core capability seems to have always been:
Seizing trends + delivering an exceptional product experience + capturing the next generation of users.

So what is the next opportunity? Where will the biggest growth points be in the future? Is it perpetual contracts? Super apps? Internationalization? Or a combination of these?

Vlad:
Actually, we are already working on many directions.

For example:
Social (Robinhood Social)—will significantly change user experience
Prediction markets—have already grown rapidly
AI—we are just getting started

We have already introduced AI into our products (like Cortex), but this is just a very early stage.

The truly interesting question is: will there be an "agent" in the future to help you manage your entire financial life?

From trading to saving to long-term asset allocation—all managed by AI, similar to a "personal family office."

I believe this will be a very large direction.

Overall, the future innovation space is vast, and we will continue to explore and bring these capabilities to life through our products.

Host:
Let's stop here. Vlad, thank you for your insights today. We have been closely following your explorations in the crypto space. Just a reminder, none of this content is investment advice. The crypto market carries risks, and investments should be made cautiously. But we are indeed moving towards a new frontier, and we are glad you can advance with us on this journey. Thank you, everyone.