Unchained Robinhood CEO Vlad Tenev and Paxos CEO Charles Cascarilla on How to Avoid Another GameStop - Ep.236
May 11, 2021
Vlad Tenev, Co-founder and CEO of Robinhood, teams up with Charles Cascarilla, Co-founder and CEO of Paxos, to dissect the financial chaos of the GameStop incident. They discuss the flaws in traditional financial infrastructure and advocate for a T+0 settlement system, arguing it could have changed the GameStop narrative. Vlad shares insights on Robinhood's crypto journey and operational strategies, while both leaders ponder the future balance between crypto and securities trading, emphasizing the need for innovation in financial technology.
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GameStop Saga Overview
- The GameStop saga highlighted how outdated back-office processes caused trading halts on platforms like Robinhood.
- This exposed the need for modernizing financial infrastructure, a topic discussed by Vlad Tenev and Charles Cascarilla.
Antiquated System Exposed
- The GameStop situation exposed outdated systems, even without a financial crisis.
- It demonstrated the need for upgrading financial infrastructure, just like roads and bridges, according to Charles Cascarilla.
Beyond T+1 Settlement
- While T+1 settlement is an improvement, it shouldn't be the end goal.
- Transitioning requires careful consideration of all market participants to avoid creating new problems.