Robinhood’s CEO, Vlad Tenev, is making headlines with his strong opinions on the future of finance. He’s a firm believer in artificial intelligence, a big supporter of crypto, and finds himself aligned with the policies of the Trump administration. In a recent Bloomberg interview, Tenev dove into his vision for a market shaped by evolving regulations, a US president who’s crypto-friendly, and the transformative power of AI in the stock market world.

When asked about former US President Donald Trump’s potential influence, Tenev expressed optimism. He expects the government to pave the way for both AI and crypto to not just coexist but thrive in the market. According to Tenev, we could see clearer rules and closer cooperation between the government and private companies, all aimed at keeping the US at the forefront of these innovative industries.

“There are sharp minds in government tackling these issues,” he noted, emphasizing how streamlined processes and transparent regulations can fuel business innovation and growth.

Should crypto and stock markets become one?

While some experts might categorize crypto as its own separate asset class, Tenev, at 38, sees it as more of a natural progression in technology, enhancing traditional finance rather than replacing it.

“I tend to think of crypto less as just another asset to trade, and more like the next step in technology, like moving from filing cabinets and paper to computers and mainframes. If you have a tradable token on various blockchains, and it’s readily available to buy and sell, in essence, that’s a new form of IPO,” he clarified.

Under Tenev’s leadership, Robinhood has ventured into prediction markets, allowing users to place bets on events like elections, similar to platforms like Polymarket, which operates on decentralized principles.

However, Tenev is keen to differentiate his platform from pure gambling, arguing that the odds aren’t “set by the house” but instead are determined by a regulated exchange environment.

“This setup improves how prices are discovered. Think of it like how we currently analyze stock markets, trying to predict the impact of things like tariffs on the economy,” he elaborated.

The Financial World is Embracing AI

Tenev isn’t just talking about AI; he’s actively building in the space. In 2023, he teamed up with programmer Tudor Achim to launch Harmonic, an AI startup focused on achieving mathematical superintelligence. The co-founders describe Harmonic’s advanced large language model (LLM) as being “capable of sophisticated mathematical reasoning and problem-solving.”

Tenev believes that breakthroughs in AI’s mathematical capabilities could revolutionize fields such as physics, biology, and chemistry, potentially leading to “major advancements” in energy solutions and extending human lifespan.

“If you reach superhuman levels in math, you essentially gain superhuman abilities across any science that relies on numbers. This opens doors to make significant progress on big challenges like creating new energy sources, increasing longevity, and understanding fundamental physics.”

In closing the interview, Tenev pointed out that AI’s influence in financial markets is undeniable and rapidly growing.

“Right now, much of the investment excitement around AI is centered on Nvidia. It’s become the most popular stock held by Robinhood users, even surpassing Tesla, which is itself a major player in AI technology. If control over AI technology is going to be concentrated in the hands of these leading companies, then becoming an investor is almost a necessity.”

Robinhood’s Crypto Trading Reflects Market Downturn

Separately, there’s good news for Robinhood as its stock price jumped about 7% in pre-market trading on Thursday, adding to a remarkable 130.57% increase over the past year. This positive movement followed Deutsche Bank’s recent assessment that the stock’s recent dip was a “good buying opportunity.” They cited strong trading volumes on the platform across stocks and options, as well as growing customer deposits, as reasons for their optimistic outlook.

However, the current slump in the crypto market is impacting trading volumes. According to a press release released on Tuesday, Robinhood saw $14.4 billion in crypto transactions in February, marking a 29% decrease from January.

In comparison, trading in stocks and options only saw a slight 1% reduction. Despite the recent drop, it’s worth noting that the company’s crypto trading volume is still double what it was a year ago.

Robinhood’s total assets under custody (AUC) reached $187 billion by the end of last month. While this is an 8% decrease from January, it’s a significant 58% increase compared to the previous year. Furthermore, net deposits for the period hit $4.8 billion, representing a strong annualized growth rate of 28%.

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Source: cryptopolitan.com