Johann Kerbrat: Blockchain can revolutionize finance, Robinhood’s open ecosystem disrupts markets and BRX connects DeFi to real returns

Key takeaways

• Blockchain technology has the potential to fundamentally improve traditional financial systems.
• Blockchain enables 24/7 transactions and instant settlement of assets, unlike traditional stock trading.
• Robinhood opts for an open developer ecosystem, contrasting with closed and siled systems.
• Emerging markets offer substantial yields that DeFi does not yet have access to, presenting opportunities for growth.
• BRX connects DeFi to institutional-grade tokenization and real-world yields.
• Tokenized assets are expected to play a crucial role in the future of financial applications in crypto.
• Robinhood’s certification process ensures compliance with regulatory and customer protection requirements.
• The company aims to expand on-chain capabilities while giving developers the freedom to innovate.
• Robinhood’s mainnet launch is expected shortly after developer feedback at hackathons.
• Different companies pursue various tokenization strategies, indicating various implementations in the market.
• Robinhood aims to disrupt the financial system by launching products that provide significant value.
• Innovation in tokenized assets is expected to return to the United States with clearer regulation.
• The liquidity problem of tokenized securities limits their use in DeFi, requiring strategic solutions.
• Robinhood connects to multiple market makers and exchanges to guarantee the best crypto trading prices.
• The Clarity Act aims to create a uniform regulatory environment for crypto products in the United States.

Guest presentation

Johann Kerbrat is Senior Vice President and General Manager of Robinhood Crypto. Before joining Robinhood in 2021 as CTO, he served as VP of Engineering at Iron Fish, a privacy-focused Layer 1 blockchain project. Under his leadership, Robinhood Crypto grew with self-custodial wallets, EU trading services, the acquisition of Bitstamp, crypto staking, and tokenized US stocks and ETFs.

The potential of blockchain to transform finance

• “Blockchain technology can fundamentally improve traditional financial systems.” –Johann Kerbrat
• Blockchain enables 24/7 trading and instant settlement of assets, unlike traditional systems.
• “It’s still not possible to buy a stock 24 hours a day, seven days a week; it’s still not instantaneous to buy a stock and settle.” –Johann Kerbrat
• Technology can address the limitations of current financial systems.
• Robinhood’s blockchain initiatives contrast with traditional closed systems.
• “It seems like you’re going the other route, which is more of an open developer ecosystem.” –Johann Kerbrat
• Emerging markets offer yields that DeFi cannot yet access, highlighting the potential of blockchain.
• “Emerging markets have generated an annual return of over $115,000,000,000 for investors. » –Johann Kerbrat

Robinhood’s strategic initiatives

• Robinhood is building an open developer ecosystem rather than a closed system.
• “It doesn’t really make sense to just build in our little corner.” –Johann Kerbrat
• The company is expanding its on-chain capabilities while enabling developer innovation.
• “Our goal is really to be able to expand what we are able to do on-chain.” –Johann Kerbrat
• The certification process ensures compliance with customer protection and regulatory requirements.
• Robinhood aims to disrupt the financial system with innovative products.
• “Every product we launch significantly disrupts the financial system.” –Johann Kerbrat
• Different tokenization strategies are pursued, indicating various implementations in the market.

The role of BRX in bridge financing

• BRX connects DeFi to institutional-grade tokenization and real-world yields.
• “BRX is doing the heavy lifting so DeFi can finally access real collateral and structured products.” –Johann Kerbrat
• Tokenized assets will play a crucial role in future financial applications of crypto.
• “We really believe in tokenized assets.” –Johann Kerbrat
• The integration of traditional financial systems with DeFi is an important development.
• BRX’s role highlights the potential for innovation in bridge financing.
• The platform offers stable, real-time settlement across all jurisdictions.
• “BRX connects these worlds with institutional-grade tokenization.” –Johann Kerbrat

Clarity of regulation and its impact

• Innovation in tokenized assets is expected to return to the United States with clearer regulation.
• “A lot of the innovation that happened outside of the United States is going to come back. » –Johann Kerbrat
• The Clarity Act aims to create a uniform regulatory environment for crypto products in the United States.
• “It’s just about establishing a level playing field for everyone.” –Johann Kerbrat
• The fragmented regulatory environment is frustrating for businesses and customers.
• “Due to some disagreements at the political level, our customer cannot access all products. » –Johann Kerbrat
• The Clarity Act will help stabilize the regulatory environment for stablecoins in the United States.
• “This clarity law will somehow put us back in the game on the same level as other countries.” –Johann Kerbrat

Liquidity issues in tokenized securities

• The liquidity problem of tokenized securities limits their use in DeFi.
• “The liquidity issue is pretty fundamental for anyone trying to put stocks and tokens on-chain.” –Johann Kerbrat
• Market fragmentation leads to liquidity fragmentation.
• “With market fragmentation, you’re going to have liquidity fragmentation.” –Johann Kerbrat
• Routing orders to the best available prices can help overcome liquidity issues.
• “Use this as an advantage to be able to route orders at the best available price. » –Johann Kerbrat
• Robinhood connects to multiple market makers and exchanges to guarantee the best crypto trading prices.
• “We connect to multiple market makers, multiple exchanges and go to the best.” –Johann Kerbrat

Robinhood’s approach to product development

• Robinhood’s strategic planning includes short- and long-term roadmaps for product development.
• “We still have a multi-year roadmap.” –Johann Kerbrat
• The company is actively pursuing mergers and acquisitions in the crypto space.
• “We think a lot about mergers and acquisitions, and we have done some in crypto.” –Johann Kerbrat
• The focus should be on growing the overall market rather than competing for market share.
• “We should focus more on growing the pie in general. » –Johann Kerbrat
• Robinhood’s wallet targets more advanced users who want greater control over their assets.
• “They want the convenience of a full-service experience; they want to control the guards.” –Johann Kerbrat

The importance of partnerships in crypto

• Long-term partnerships are essential in the crypto space due to the prevalence of scams and glitches.
• “This is especially important in the crypto space, where so many things remain somehow scams.” –Johann Kerbrat
• Robinhood will likely integrate with Talos in the future to improve its crypto offerings.
• “That’s something they can absolutely do in the future.” –Johann Kerbrat
• Talos enables faster integration with market makers and exchanges, improving liquidity options.
• “Talos brings a platform that can allow us to do this faster. » –Johann Kerbrat
• The company is moving from a retail-only platform to an institutional clientele as well.
• “Our goal with Bitstamp is not just to offer an exchange to retail customers.” –Johann Kerbrat

Regulatory challenges for perpetual contracts

• Perpetual contracts are not widely available in the United States due to regulatory challenges.
• “Perpetual is not a really allowed product in the United States.” –Johann Kerbrat
• The CFTC’s new presidency could lead to regulatory changes that could bring more trading volume back to U.S. exchanges.
• “Hopefully we’ll see something there, because we’re seeing a lot of the volume being exported overseas.” –Johann Kerbrat
• Perpetual contracts are essential for the United States to remain competitive in the crypto market.
• “Criminals will be one of the reasons.” –Johann Kerbrat
• The focus should be on market growth rather than competition for market share.
• “We should focus more on growing the pie in general. » –Johann Kerbrat

Product diversity and customer outcomes

• It is essential to offer multiple product options to ensure the best results for customers.
• “It’s important for us to not have just one option.” –Johann Kerbrat
• Developers should refer to published documentation to effectively build on the Robinhood testnet.
• “They should look at the documents we just released.” –Johann Kerbrat
• The Robinhood wallet offers users control of their assets while maintaining a user-friendly interface.
• “You control the keys; you control what you do.” –Johann Kerbrat
• The wallet targets more advanced users who want greater control over their financial assets.
• “Some hardcore people want the convenience of a full-service experience.” –Johann Kerbrat