Johann Kerbrat: Blockchain can revolutionize finance, Robinhood’s open ecosystem disrupts markets, and BRX closes DeFi with real-world yield.

Important takeaways

• Blockchain technology has the potential to fundamentally improve traditional financial systems.
• Blockchain enables 24/7 trading and immediate asset settlement, unlike traditional stock trading.
• Robinhood prefers an open developer ecosystem, versus closed, siled systems.
• Emerging markets offer high yields that DeFi has yet to achieve, presenting opportunities for growth.
• BRX combines DeFi with an institutional-level token and real-world yield.
• Tokenized assets are expected to play an important role in the future of financial applications in crypto.
• Robinhood’s certification process ensures compliance with customer protection and regulatory requirements.
• The company aims to maximize on-chain capabilities while allowing developers the freedom to innovate.
• The main net launch of Robinhood is expected soon after developer feedback from hackathons.
• Different companies are pursuing different tokenization strategies, reflecting different market uses.
• Robinhood aims to disrupt the financial system by creating products that deliver significant value.
• The establishment of token assets is expected to return to the US with improved regulatory clarity.
• The liquidity problem in tokenized securities limits their use in DeFi, which requires strategic solutions.
• Robinhood connects to multiple market makers and exchanges to ensure the best prices for crypto trading.
• The Clarity Act aims to create a common regulatory environment for crypto products across the US.

Guest introduction

Johann Kerbrat is the Senior Vice President and General Manager of Robinhood Crypto. Before joining Robinhood in 2021 as Chief Technology Officer, he served as VP of Engineering at Iron Fish, a blockchain project focused on Layer 1 privacy. Under his leadership, Robinhood Crypto expanded with custodial wallets, EU trading services, Bitstamp acquisitions, crypto staking, and US stock tokens and ETFs.

Blockchain’s potential to transform finance

• “Blockchain technology can fundamentally improve traditional financial systems.” – Johann Kerbrat
• Blockchain enables 24/7 trading and immediate asset settlement, unlike traditional systems.
• “Twenty-four-seven isn’t working yet; it’s not too early to buy a stock and settle down.” – Johann Kerbrat
• Technology can face limitations in current financial systems.
• Robinhood’s blockchain initiatives are opposed to traditional closed systems.
• “Looks like you’re going down another road that’s an open space for engineers.” – Johann Kerbrat
• Emerging markets offer yields that DeFi has yet to reach, highlighting the potential of blockchain.
• “Emerging markets have generated over $115,000,000,000 in annual revenue for investors.” – Johann Kerbrat

Robinhood’s strategic moves

• Robinhood is building an open developer ecosystem rather than a closed system.
• “It doesn’t make a lot of sense to just build in our little corner.” – Johann Kerbrat
• The company is expanding its capabilities in the chain while allowing innovation for developers.
• “Our goal is to be able to increase what we are able to do in the chain.” – Johann Kerbrat
• The certification process ensures compliance with customer protection and regulatory requirements.
• Robinhood aims to disrupt the financial system with new products.
• “Any product that we introduce is very disruptive to the financial system.” – Johann Kerbrat
• Different tokenization strategies are followed, reflecting different market implementations.

BRX’s role in financial integration

• BRX connects DeFi with an institutional-level token and real-world yield.
• “BRX is raising the bar for DeFi to finally have access to real collateral and structured products.” – Johann Kerbrat
• Tokenized assets will play an important role in future financial systems in crypto.
• “We’re really big believers in token assets.” – Johann Kerbrat
• The integration of traditional financial systems with DeFi is an important development.
• BRX’s role highlights the power of innovation in financial integration.
• The platform offers real-time stablecoin payments across borders.
• “BRX connects these worlds with an institutional-level token.” – Johann Kerbrat

Legal clarity and its impact

• The establishment of token assets is expected to return to the US with improved regulatory clarity.
• “A lot of the innovations that were happening outside of the US are going to come back.” – Johann Kerbrat
• The Clarity Act aims to create a common regulatory environment for crypto products across the US.
• “It just levels the playing field for everybody.” – Johann Kerbrat
• The diverse regulatory environment is a concern for companies and customers.
• “Just because there is disagreement at the political level, our customers cannot access all the products.” – Johann Kerbrat
• The Clarity Act will help stabilize the regulatory environment for stablecoins in the US.
• “This clear action will bring us back to the game on the same level as other countries.” – Johann Kerbrat

Liquidity challenges in tokenized securities

• The liquidity problem in tokenized securities limits their use in DeFi.
• “The liquidity issue is very important for anyone trying to put shares and tokens on chains.” – Johann Kerbrat
• Market diversification leads to financial diversification.
• “With market diversification, you’re going to have financial diversification.” – Johann Kerbrat
• Routing orders at the best available prices can navigate liquidity challenges.
• “Using that as an advantage is being able to place orders at the best price available.” – Johann Kerbrat
• Robinhood connects to multiple market makers and exchanges to ensure the best prices for crypto trading.
• “We connect to multiple market makers, multiple exchanges, and a route to the best.” – Johann Kerbrat

Robinhood’s approach to product development

• Robinhood’s strategic planning includes both short-term and long-term roadmaps for product development.
• “We always have a multi-year roadmap.” – Johann Kerbrat
• The company is actively pursuing mergers and acquisitions in the crypto space.
• “We’re thinking a lot about M&A, and we’ve done something with crypto.” – Johann Kerbrat
• The focus should be on growing the overall market rather than competing for market share.
• “We have to focus more on growing the pie in general.” – Johann Kerbrat
• The Robinhood wallet is aimed at more advanced users who want more control over their assets.
• “They want the ease of use of a full service; they want control over maintenance.” – Johann Kerbrat

The importance of partnerships in crypto

• Long-term partnerships are important in the crypto space due to the prevalence of scams and problems.
• “It’s very important in crypto where a lot of things have been around with scams.” – Johann Kerbrat
• Robinhood will likely team up with Talos in the future to develop their crypto offerings.
• “It’s something they can absolutely do in the future.” – Johann Kerbrat
• Talos enables rapid integration with market makers and exchanges, improving liquidity options.
• “Talos brings a platform that allows us to do that very quickly.” – Johann Kerbrat
• The company is transitioning from a retail-only presence to also serving institutional customers.
• “Our goal with Bitstamp is not just to serve retail customers.” – Johann Kerbrat

Regulatory challenges of indefinite contracts

• Permanent contracts are not widely available in the US due to regulatory challenges.
• “Eternity is not really an approved product in the US.” – Johann Kerbrat
• The new CFTC chair could lead to regulatory changes that could restore more trading volume to US exchanges.
• “I hope that we will see something there because we see a large volume coming down the coast.” – Johann Kerbrat
• Perpetual contracts are essential for the US to remain competitive in the crypto market.
• “Perps will be one of the reasons for that.” – Johann Kerbrat
• The focus should be on growing the market rather than competing for market share.
• “We have to focus more on growing the pie in general.” – Johann Kerbrat

Product diversity and customer outcomes

• It is important to offer multiple product options to ensure the best results for customers.
• “It’s important that we don’t have only one option.” – Johann Kerbrat
• Developers should refer to the published documentation to successfully build on the Robinhood test network.
• “They should look at the documents we just published.” – Johann Kerbrat
• Robinhood Wallet gives users the ability to manage their assets while maintaining an easy-to-use interface.
• “You control the keys; you control what you do.” – Johann Kerbrat
• The wallet is aimed at more advanced users who want more control over their financial assets.
• “Some serious people want the ease of use of a full service.” – Johann Kerbrat