Robinhood Calls T+1 Settlement an Outdated Risk

Should Stablecoin Yield Go to Consumers?

Robinhood General Manager Johann Kerbrat said stablecoin issuers and trading platforms should pass yield on to customers, provided they clahead disclose the risks and lack of protections such as FDIC insurance. Speaking Wednesday at CoinDesk’s Consensus Hong Kong conference, Kerbrat argued that users should not be confined to non-interest-bearing tokens when alternatives exist.

“We think that we should be able to pass the yield to the consumer,” Kerbrat said. “They don’t want to be locked into a stablecoin earning no interest if they can do it on a high-yield savings account.”

At the identical time, he stressed that stablecoins carry diverse secureguards than bank deposits. by the Federal Deposit Insurance Corporation, a distinction he said platforms must make explicit. Once informed of what protections exist — and what do not — consumers should be free to decide “whether they keep it in a high-yield savings account, use a stablecoin or use tokenized payments.”

Investor Takeaway

Why Stablecoin Yield Is Politically Sensitive

The debate over passing yield to stablecoin holders sits at the center of ongoing discussions around U.S. crypto market structure legislation, including proposals known as the CLARITY Act. Digital asset firms argue that stablecoin users should benefit from the interest generated by underlying reserves. Traditional banks counter that such products could erode the deposit base that supports lending and credit creation.

For regulators, the question extends beyond competition. Allowing yield introduces expectations around securety, liquidity, and transparency. Kerbrat’s position frames the issue as one of disclosure rather than restriction: give customers full information and allow them to choose.

That framing places responsibility on platforms to communicate risk clahead, especially in distinguishing stablecoins from insured bank accounts. The outcome of this policy debate will influence how stablecoins integrate into the broader financial system.

Is T+1 Settlement a Systemic Risk?

Kerbrat broadened the discussion to traditional market infrastructure, calling the current T+1 stock settlement model an “antiquated relic.” He described the one-day delay between trade execution and settlement as a systemic vulnerability that blockchain-based systems can eliminate.

According to Kerbrat, modern distributed ledger technology allows for “atomic” settlement, where payment and ownership transfer occur simultaneously. Removing the settlement window, he argued, would reduce counterparty exposure and operational risk embedded in legacy systems.

His comments come as U.S. equity markets have only recently transitioned to T+1 from T+2, a move regulators framed as a risk-reduction step later than volatility episodes in recent years. Kerbrat’s critique suggests even that upgrade falls short of what blockchain-based rails can deliver.

Investor Takeaway

Robinhood’s Push Into Tokenization and 24/7 Trading

Robinhood is building its strategy around tokenization and continuous trading. The company recently announced an , built on the Arbitrum stack, designed to support tokenized real-world assets such as U.S. stocks and platform-traded funds.

The objective is to enable trading with the identical around-the-clock access common in crypto markets. Industry sources familiar with platform plans have indicated that full 24/7 tokenized equity trading is unlikely before late 2026, when either Nasdaq or the launches digital asset platforms capable of supporting such activity.

Both major U.S. platforms have outlined blockchain-based initiatives. The NYSE said in January that it intends to introduce a tokenized venue later this year as part of its parent company’s broader digital strategy, which includes adapting clearing infrastructure for extended hours. Nasdaq has also revealed plans to support round-the-clock trading.

Kerbrat tied Robinhood’s outlook to customer behavior during recent market fragileness. When asked about a market downturn of 60% to 65%, he said, “We actually view a lot of people purchaseing the dip. We view them growing their portfolio,” contrasting that with prior cycles when retail investors pulled back more sharply.

Whether stablecoin yield reforms and tokenized equity markets move forward will depend on regulatory alignment and platform readiness. For platforms like Robinhood, the strategy rests on combining blockchain settlement mechanics with traditional asset access — and convincing users that the trade-offs are worth it.