WEBVTT - Robinhood's CEO on the Plan to Tokenize Everything 0:00:02.480 --> 0:00:16.160 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:18.200 --> 0:00:22.080 Hello and welcome to another episode of the Odd Lots podcast. 0:00:22.360 --> 0:00:24.599 I'm Joe Wisenthal, and I'm Tracy Alloway. 0:00:24.960 --> 0:00:27.960 Tracy, here's something that surprised me. Okay, so it's twenty 0:00:28.000 --> 0:00:28.640 twenty five. 0:00:29.800 --> 0:00:31.840 I would have thought, you know, are you surprised it's 0:00:31.840 --> 0:00:32.640 twenty twenty five. 0:00:32.680 --> 0:00:35.199 I'm surprised we made it this long. I'm surprised. 0:00:35.360 --> 0:00:36.160 Fair, that's fair. 0:00:36.800 --> 0:00:39.519 I am surprised, you know. And I think back to 0:00:39.640 --> 0:00:42.760 twenty twenty one and like the crypto boom of that 0:00:42.840 --> 0:00:46.720 ear and the stock, the spac mania and all that stuff, 0:00:46.960 --> 0:00:50.240 that craziness, Like I sort of thought, to some extent 0:00:50.280 --> 0:00:52.040 that would have been a little bit more flash in 0:00:52.080 --> 0:00:55.240 the pan because you know, like ninety nine, two thousand, 0:00:55.720 --> 0:00:57.680 a couple of years later, like people were not talking 0:00:57.680 --> 0:01:01.160 about dot com stocks like two years later. Because I'm like, 0:01:01.480 --> 0:01:02.920 I thought it was going to be a repeat of that, 0:01:03.160 --> 0:01:07.399 all of this retail obsession with options and call options 0:01:07.440 --> 0:01:10.000 and speculation, etc. I thought that'd be a thing, you know, 0:01:10.480 --> 0:01:13.240 short phenomenon. A bunch of people lose their money in 0:01:13.319 --> 0:01:15.920 twenty twenty two and twenty twenty three when some of 0:01:15.959 --> 0:01:18.400 that stuff busts and then they lose interest and they 0:01:18.440 --> 0:01:20.440 go on to other things and sort of forget about 0:01:20.520 --> 0:01:23.039 trading for a while. But I don't think that was 0:01:23.040 --> 0:01:24.720 an incorrect assumption on my part. 0:01:24.760 --> 0:01:27.240 I think people discovered that they really enjoy losing money. 0:01:28.120 --> 0:01:33.200 It is, yes, okay, genuinely. What I would say is 0:01:34.160 --> 0:01:37.720 this all started in the pandemic, right, Yeah, to some extent, 0:01:37.800 --> 0:01:40.920 But I think crypto opened the door to this idea 0:01:41.080 --> 0:01:43.120 that you can have a number on a screen and 0:01:43.280 --> 0:01:45.800 just bet whether it's going to go up or down, 0:01:46.120 --> 0:01:50.160 like basically a synthetic number. Almost right, It's just this token. 0:01:50.680 --> 0:01:53.080 And then what happened during the pandemic is everyone was 0:01:53.120 --> 0:01:56.960 really bored. Game stop became a thing. Everyone kind of 0:01:57.000 --> 0:02:01.720 discovered that momentum was maybe more fun to play than 0:02:02.080 --> 0:02:05.520 boring stuff like value, and I was, you know, it 0:02:05.600 --> 0:02:08.600 did honestly feel like a cultural shift when it came 0:02:08.639 --> 0:02:11.280 to the way people were thinking about trading. And I'm 0:02:11.280 --> 0:02:14.040 not I guess I'm not as surprised that it's it's 0:02:14.120 --> 0:02:16.920 continued to this day, and if anything, this sort of 0:02:16.960 --> 0:02:20.560 tokenization of the stock market, people playing options, people playing 0:02:20.600 --> 0:02:22.880 crypto has become bigger than ever. 0:02:23.400 --> 0:02:26.160 It's just a cultural shift. It's also like everything has 0:02:26.200 --> 0:02:28.520 a price now, which I think is very important. Like today, 0:02:28.720 --> 0:02:32.520 like we're constantly looking at prices for politics right now, 0:02:32.560 --> 0:02:36.880 We're constantly looking for prices related to geopolitical events on 0:02:37.000 --> 0:02:41.440 sites like Kelshi or polymarket, et cetera. It has expanded 0:02:41.520 --> 0:02:45.120 so much so there's crypto, there's options trading there, et cetera. 0:02:45.280 --> 0:02:48.080 Like we are like drenched in a culture of like 0:02:48.280 --> 0:02:51.080 there's a price on something, there's a thing that's going on, 0:02:51.680 --> 0:02:53.600 you can trade it. And I now think, you know, 0:02:53.639 --> 0:02:55.760 it's gonna be with us forever, because it clearly was 0:02:55.840 --> 0:02:58.640 not just like a you know, a one year sort 0:02:58.639 --> 0:03:01.120 of zerp era every on board at home phenomenon. 0:03:01.240 --> 0:03:02.680 Well, it's not just that you could trade it. You 0:03:02.680 --> 0:03:03.760 can trade it really easily. 0:03:03.840 --> 0:03:04.359 Yeah, right. 0:03:04.440 --> 0:03:06.679 You can just open up your phone some things you 0:03:06.720 --> 0:03:09.560 can trade twenty four hours a day and just make 0:03:09.720 --> 0:03:11.240 or lose money as you choose. 0:03:11.680 --> 0:03:15.160 I love making or losing money as I choose. Anyway. 0:03:15.800 --> 0:03:18.440 One of the companies that we really associate with this 0:03:18.520 --> 0:03:22.240 sort of boom and retail participation that era and that 0:03:22.440 --> 0:03:26.919 of course is robin Hood, the company that was famous 0:03:26.919 --> 0:03:29.760 for being the first to introduce fre stock trading just 0:03:29.800 --> 0:03:32.640 kind of mind blowing, and lots of people use it. 0:03:32.680 --> 0:03:36.680 For many people is their introduction to trading options and stocks, 0:03:36.720 --> 0:03:39.840 particularly during the pandemic associated with the meme stock there, 0:03:39.920 --> 0:03:42.920 which kind of still exists. Anyway, we have the perfect 0:03:42.920 --> 0:03:44.160 guest go on what we're gonna say. 0:03:44.200 --> 0:03:47.520 I was going to say, Robinhood in my mind like 0:03:47.720 --> 0:03:51.120 definitely caught the wave of this cultural shift at exactly 0:03:51.200 --> 0:03:53.840 the right time. But it's also, in my mind like 0:03:53.880 --> 0:03:58.080 an ode to the importance of user interface. Genuinely, the 0:03:58.240 --> 0:04:01.960 app is just more interesting, more fun. I guess some 0:04:01.960 --> 0:04:04.240 people would say, more easy to use than a lot 0:04:04.240 --> 0:04:06.360 of other things. This sounds like an ad I don't 0:04:06.400 --> 0:04:09.400 mean it to be, but I remember, for instance, when 0:04:09.920 --> 0:04:12.480 you know, when you used to make trades on robin 0:04:12.520 --> 0:04:15.200 Hood and you would get like a little confetti animation 0:04:15.520 --> 0:04:18.400 every time you did it. Like can you imagine TDAM 0:04:18.440 --> 0:04:22.320 error trade or like Schwab or something doing something like that. 0:04:22.720 --> 0:04:25.039 Uh. The one other thing I'll say about them is 0:04:25.080 --> 0:04:27.600 they're doing phenomenally well. The stock is like back at 0:04:27.720 --> 0:04:30.279 like basically at all time highs. It's not just a 0:04:30.320 --> 0:04:32.279 company that offers free trades I think they have like 0:04:32.400 --> 0:04:35.640 nine different units at one hundred million dollars annual run. 0:04:35.720 --> 0:04:38.800 Raid Truly, I think it is becoming a juggernaut anyway. 0:04:38.880 --> 0:04:42.560 Thrilled to say we have its CEO and founder, Vladteneve 0:04:42.720 --> 0:04:45.719 on the podcast today, so in studio Flad, thank you 0:04:45.760 --> 0:04:47.920 so much for coming on the Outlaws. Thrilled to finally 0:04:47.960 --> 0:04:48.599 be chatting with you. 0:04:48.800 --> 0:04:51.000 Thank you for the warm welcome. It's great to be here. 0:04:51.520 --> 0:04:55.440 That cohort that came into markets in like twenty twenty 0:04:55.480 --> 0:04:58.760 and twenty twenty one, that sort of you know, whatever 0:04:58.800 --> 0:05:02.440 that cohort was, did they behave differently today than say 0:05:02.839 --> 0:05:07.000 the twenty nine teen cohort or the twenty eighteen cohort? 0:05:07.279 --> 0:05:09.240 Is there something about them that if you look at 0:05:09.279 --> 0:05:13.160 say trading in April during the volatility, is there are 0:05:13.600 --> 0:05:14.120 they different? 0:05:16.240 --> 0:05:21.159 Yeah, so I should rewinding four five years at this 0:05:21.279 --> 0:05:26.080 point time ago, there were lots of people that came 0:05:26.120 --> 0:05:30.120 into the market for the first time in twenty nineteen. 0:05:30.560 --> 0:05:34.560 In twenty twenty, I think right before the pandemic, I 0:05:34.640 --> 0:05:37.839 was in New York and I remember that visit because 0:05:37.839 --> 0:05:41.000 it was sort of like before everything got weird. We 0:05:41.080 --> 0:05:45.599 announced ten million approved accounts on the platform, which was 0:05:45.600 --> 0:05:51.839 a crazy number for US, but Robinhood was already quite 0:05:51.920 --> 0:05:55.640 big even before the pandemic started, So we had ten 0:05:55.640 --> 0:06:00.760 million approved accounts. It was like pretty clear that we 0:06:00.839 --> 0:06:04.080 had created sort of the new era of retail investing 0:06:04.320 --> 0:06:09.920 because before the pandemic we were a Series D company, 0:06:10.080 --> 0:06:12.960 so like late stage private company. I think the valuation 0:06:13.160 --> 0:06:15.760 was something like seven billion. We had a few hundred 0:06:15.839 --> 0:06:19.760 million in annual run rate revenue, and basically the entire 0:06:19.800 --> 0:06:24.159 industry ended up having to replicate our business model in 0:06:24.279 --> 0:06:27.200 order to survive, and not all of them could survive 0:06:27.440 --> 0:06:30.720 as independent entities. You know, tedm Miror Trade had to 0:06:30.920 --> 0:06:34.480 get folded into schwab e Trade, which was sort of 0:06:34.520 --> 0:06:38.920 like the leader of the prior disruptive era in retail trading, 0:06:38.960 --> 0:06:42.080 which was the dot com era, had to get folded 0:06:42.120 --> 0:06:46.680 into Morgan Stanley to survive as a standalone company. And 0:06:46.760 --> 0:06:51.000 so we were already I mean, we had already accelerated 0:06:51.040 --> 0:06:55.080 and kind of turned back the clock. Everyone was saying 0:06:55.080 --> 0:06:59.400 retail trading and investing was over. Everyone was indexing into 0:06:59.440 --> 0:07:02.240 et passive was the new thing. So there was a 0:07:02.240 --> 0:07:05.560 lot of skepticism, but we kind of inverted that, and 0:07:05.600 --> 0:07:09.200 then you had the pandemic, where pretty much across all 0:07:09.240 --> 0:07:12.119 of our business metrics, which we already thought were doing well, 0:07:12.520 --> 0:07:15.760 we kind of increased an order of magnitude. And I 0:07:15.800 --> 0:07:20.800 think the behavior of customers as a result of the 0:07:20.840 --> 0:07:25.240 pandemic is a bit of an intricate question because there 0:07:25.240 --> 0:07:27.360 have been so many things that happened in the macro 0:07:27.520 --> 0:07:30.280 since then, and we have so many different types of customers, 0:07:30.640 --> 0:07:35.120 So to like dramatically oversimplify, you could think of Robinhood 0:07:35.120 --> 0:07:39.280 as having two diametrically different classes of customers. One is 0:07:40.040 --> 0:07:45.120 the active trader, and these are the folks. To give 0:07:45.240 --> 0:07:49.600 like a motorsport analogy, right, the active traders are the 0:07:49.640 --> 0:07:53.280 folks that are like motorheads, Like they care about performance, 0:07:53.560 --> 0:07:56.160 they care about having like really fast cars. They want 0:07:56.200 --> 0:07:58.640 to be at the frontier of technology and innovation. 0:07:59.440 --> 0:08:02.720 Said that people posting loss porn on Wall Street bets. 0:08:02.560 --> 0:08:05.520 Right, not necessarily. I think some of them are. I 0:08:05.520 --> 0:08:07.480 think that that's a more general. 0:08:07.160 --> 0:08:11.120 Can we talk about lost porn later? To keep going, 0:08:11.200 --> 0:08:13.440 These are the folks that are like strapped into their 0:08:13.440 --> 0:08:18.280 battle stations and have like nine monitoring the situation exactly. 0:08:18.440 --> 0:08:21.960 Some of them are incredibly sophisticated and wealthy, and they 0:08:22.000 --> 0:08:25.720 even have Bloomberg terminals, or it would have been sort 0:08:25.720 --> 0:08:29.320 of like the Bloomberg terminal customer. And so that's like 0:08:29.360 --> 0:08:34.160 a higher net worth, very active group, small group, but premium. 0:08:34.640 --> 0:08:38.920 And then we have to come back to the motorsport analogy. 0:08:39.160 --> 0:08:43.079 The folks that buy minivans right the mass market, they 0:08:43.160 --> 0:08:46.600 just want to invest. They want a relatively hands free 0:08:47.280 --> 0:08:51.560 and sort of like low friction way of investing and 0:08:51.600 --> 0:08:56.200 saving for the long term. And we have products that 0:08:57.040 --> 0:08:59.480 serve both of those. So we want to be number 0:08:59.480 --> 0:09:02.400 one in the act trader market. We're rapidly we're rapidly 0:09:02.400 --> 0:09:05.160 gaining market share there. But also we want to be 0:09:05.200 --> 0:09:08.480 the place where if you're a millennial or gen Z customer, 0:09:08.679 --> 0:09:11.400 you put all of your wealth, so you deposit your 0:09:11.440 --> 0:09:15.400 bank account direct deposit in there, you do all of 0:09:15.440 --> 0:09:18.160 your spending with us with our credit card. Of course, 0:09:18.200 --> 0:09:20.880 you do your trading, but you also have your retirement 0:09:20.920 --> 0:09:24.880 account your long term passive investments as well. So we're 0:09:24.920 --> 0:09:29.080 kind of focused on both of these things with two 0:09:29.280 --> 0:09:33.640 very different customer bases. And I say it's oversimplifying because 0:09:34.480 --> 0:09:38.120 you also have customers that have both of these behaviors. 0:09:38.440 --> 0:09:41.320 So a lot of our active traders they also need 0:09:41.360 --> 0:09:44.640 banking tools, they need spending. They have a passive portfolio, 0:09:44.679 --> 0:09:47.760 which can be larger elsewhere, but not everyone is an 0:09:47.800 --> 0:09:52.760 active trader. And so also since COVID, you had a 0:09:52.800 --> 0:09:57.280 whipsaw of low rates, zero interest rate environment which made 0:09:57.320 --> 0:10:02.240 stocks and more speculative, higher growth investments more attractive. But 0:10:02.320 --> 0:10:05.280 then we whipsaw to the highest interest rate environment we've 0:10:05.280 --> 0:10:09.080 seen in multiple decades, and then Robinhood had to respond 0:10:09.360 --> 0:10:13.360 very rapidly and aggressively to survive in that environment. And 0:10:13.400 --> 0:10:17.160 we introduce things like retirement, like the highest apy in 0:10:17.200 --> 0:10:20.880 the industry on cash, so that you could earn interest 0:10:21.000 --> 0:10:24.040 while your cash was sitting there, and you know, just 0:10:24.280 --> 0:10:26.480 a ton of diversification of the business so that our 0:10:26.520 --> 0:10:30.480 customers who became less interested in trading during that time 0:10:31.080 --> 0:10:34.320 could could find ways to you know, take advantage of 0:10:34.320 --> 0:10:36.760 the environment and capitalize with their strategies. 0:10:37.200 --> 0:10:41.160 So, I know, one of the initial competitive advantages you 0:10:41.240 --> 0:10:45.160 had was the zero trading fees, but beyond that, you know, 0:10:45.240 --> 0:10:47.559 I mentioned in the intro that, like, I honestly think 0:10:47.840 --> 0:10:50.760 Robinhood is sort of a I guess a story about 0:10:50.760 --> 0:10:54.320 the importance of user interface, and some people would say 0:10:54.400 --> 0:10:56.720 that's a great thing. You know, users can come on 0:10:56.800 --> 0:11:00.880 and you can transfer money relatively quickly. It's very easy 0:11:00.960 --> 0:11:03.600 to set up and execute a trade. You can basically 0:11:03.760 --> 0:11:06.400 do it without typing very much while you're sitting at 0:11:06.400 --> 0:11:09.920 a bar or in a restaurant or whatever. But you know, 0:11:10.040 --> 0:11:13.319 you also have things like the screen itself is very colorful. 0:11:13.559 --> 0:11:17.040 It photographs well so that people can post those screenshots 0:11:17.120 --> 0:11:21.320 on forums like Wall Street bets. I guess my question is, like, 0:11:22.120 --> 0:11:24.280 to what extent would you attribute the success of the 0:11:24.320 --> 0:11:29.640 company versus old school competitors to that user interface or 0:11:29.679 --> 0:11:33.839 maybe the gamification of stock market trading, which you really, 0:11:33.880 --> 0:11:36.520 you know, you played into at exactly the right moment. 0:11:36.800 --> 0:11:40.480 I reject the gamification premise. 0:11:41.320 --> 0:11:45.319 You don't think the app is designed really well. 0:11:45.400 --> 0:11:47.920 I think it's designed well. But I think when I 0:11:47.920 --> 0:11:51.840 think about so, obviously, I grew up as a gamer, 0:11:52.320 --> 0:11:56.360 so I'm a bit of a student of traditional gamification, 0:11:57.000 --> 0:11:59.839 and when you say gamification to me, it means you know, 0:12:00.120 --> 0:12:05.480 leader boards, social dynamics, and people claim we do all that, 0:12:05.679 --> 0:12:08.120 but we actually do none of it. I think the 0:12:08.160 --> 0:12:12.080 reason Robinhood was successful in the early days is that 0:12:12.160 --> 0:12:15.960 we offered something that nobody else offered, which was commission 0:12:15.960 --> 0:12:19.120 free trading. And I think the reality is if I 0:12:19.160 --> 0:12:21.640 look at the design of the Robinhood app and old 0:12:21.640 --> 0:12:25.720 screenshots of it, I don't think it was particularly easy 0:12:25.760 --> 0:12:27.839 to use. I mean, it was easier to use than 0:12:28.160 --> 0:12:32.679 the competition, maybe because we weren't really competing against traditional 0:12:32.679 --> 0:12:36.200 technology companies that are known for user interface. But I 0:12:36.200 --> 0:12:39.560 think the reality was that the value proposition was so 0:12:39.800 --> 0:12:44.040 strong that people could actually put up with a lot 0:12:44.080 --> 0:12:47.679 of cruft in the user interface to just get the 0:12:47.720 --> 0:12:51.600 core value, which was commission free trading and investing. I 0:12:51.640 --> 0:12:55.240 think over time what happens is as sort of like 0:12:55.280 --> 0:12:59.000 the unique thing we had commission free trading became universal. 0:12:59.559 --> 0:13:05.080 There was like competitive dynamic where the services that reduce friction, 0:13:05.600 --> 0:13:10.199 there's just a natural force to make the services less 0:13:10.200 --> 0:13:13.760 friction full and more easy to use. And I think 0:13:13.760 --> 0:13:17.000 you kind of see that across industries, and that just 0:13:17.080 --> 0:13:20.960 comes from paying close attention to the users, looking at 0:13:20.960 --> 0:13:23.720 their pain points, and having a system where you just 0:13:23.800 --> 0:13:28.040 like systematically reduce those pain points. Like we literally spend 0:13:28.040 --> 0:13:31.920 time sitting with users watching them use the product, see 0:13:31.920 --> 0:13:35.440 the points where they get confused and try to try 0:13:35.480 --> 0:13:37.880 to fix it. And I think you'll see that in 0:13:38.320 --> 0:13:42.480 any technology company. But you know, most companies have become 0:13:42.520 --> 0:13:47.040 technology companies at this point. Any company that's like doing 0:13:47.120 --> 0:13:50.199 a reasonable job, I think will come to the level 0:13:50.200 --> 0:13:54.120 where they're actually doing user feedback and iterations on design 0:13:54.280 --> 0:13:57.560 based on it. If you don't do that nowadays, you'll 0:13:57.679 --> 0:14:00.719 essentially not survive in the in the marketplace. 0:14:07.320 --> 0:14:10.800 Just going back though to that twenty twenty one or 0:14:10.840 --> 0:14:14.000 twenty twenty cohort, you said something interesting, which is that 0:14:14.080 --> 0:14:16.920 some people trade and they have like a more passive 0:14:17.160 --> 0:14:21.080 long term book. They're you know, not people do both. 0:14:21.400 --> 0:14:24.320 The word maturation I don't know, a little condescending, but 0:14:24.560 --> 0:14:27.440 has there been a maturation of that base in some 0:14:27.520 --> 0:14:33.240 sense where people who initially got into trading because it 0:14:33.280 --> 0:14:35.600 looked fun or was exciting, or they were bored, et cetera, 0:14:36.040 --> 0:14:38.840 those customers over time of like Oh, and also long 0:14:38.920 --> 0:14:41.520 term buy and hold in indexing is also something that's 0:14:41.560 --> 0:14:45.080 probably a good idea, Like do you see growth among 0:14:45.120 --> 0:14:47.080 that cohort in terms of what they're interested in? 0:14:47.480 --> 0:14:52.640 Generally every person ends up having a need to invest 0:14:53.040 --> 0:14:53.760 now like. 0:14:53.840 --> 0:14:56.080 An actually invest not just trade when you say. 0:14:56.040 --> 0:15:00.640 Yeah, yeah, so not everyone actually sticks with trading becomes 0:15:00.880 --> 0:15:04.720 an active trader. A lot of people trade more actively 0:15:04.920 --> 0:15:08.560 at first and then eventually end up doing like more 0:15:08.600 --> 0:15:13.040 passive investing. Interesting mostly because they don't if you talk 0:15:13.080 --> 0:15:14.880 to these people, they don't want to put in the 0:15:14.920 --> 0:15:18.520 time to like spend that they have other things to do, 0:15:18.640 --> 0:15:21.160 so they prefer all their investments to be hands off. 0:15:21.400 --> 0:15:25.800 Some people end up trading a lot. And I do 0:15:25.920 --> 0:15:29.760 believe that it's a skill that you could actually get 0:15:29.800 --> 0:15:33.400 better at and improve at. And you know, not everyone 0:15:33.640 --> 0:15:36.160 actually wants to put in the time and effort to 0:15:36.920 --> 0:15:39.840 do that, And so we serve those people with other tools, 0:15:39.920 --> 0:15:42.360 you know, retirement accounts. We have a new product that 0:15:42.400 --> 0:15:46.400 we rolled out called Robinhood Strategies that you just deposit 0:15:46.520 --> 0:15:49.400 money and it'll invest for you and of course give 0:15:49.440 --> 0:15:50.200 you the rational. 0:15:50.400 --> 0:15:52.680 Is that like copy trading or is this different? 0:15:52.880 --> 0:15:56.720 It's it's a digital advisory product. Okay, so it's a yeah, 0:15:56.880 --> 0:16:00.600 we have a registerant investment advisor and it will this. 0:16:00.800 --> 0:16:03.120 Is it the closer betterment or something like that sort 0:16:03.120 --> 0:16:04.920 of business like the sort of robo. 0:16:04.800 --> 0:16:07.680 Yeah, it's similar to a robo except there's a couple 0:16:07.720 --> 0:16:11.720 of interesting elements. One is your fee is capped. It's 0:16:11.720 --> 0:16:15.240 capped at two hundred and fifty dollars per year if 0:16:15.280 --> 0:16:18.440 you have one hundred thousand in your account. So most 0:16:18.680 --> 0:16:22.760 robo products, even though they're lower cost than traditional advisors, 0:16:23.240 --> 0:16:26.040 get more expensive for you the more money you put 0:16:26.040 --> 0:16:29.160 in there. And we thought that was like fundamentally broken. 0:16:29.320 --> 0:16:32.720 As you put more money, the service should get more 0:16:32.760 --> 0:16:34.960 compelling for you. You should feel like you're getting more 0:16:35.040 --> 0:16:40.120 value because the overall relationship to Robinhood is much more valuable. 0:16:40.560 --> 0:16:42.760 So we sort of like inverted the model so that 0:16:42.800 --> 0:16:45.480 it actually on a percentage basis, gets cheaper the more 0:16:45.520 --> 0:16:50.200 money you have. And then also we have these personalized insights. 0:16:50.320 --> 0:16:53.560 Every time something happens to your portfolio, you can read 0:16:53.600 --> 0:16:56.280 about it and why we made that change, and you 0:16:56.320 --> 0:17:00.200 can also listen to us explain it via audio, which 0:17:00.200 --> 0:17:03.560 has been really really popular for our customers. 0:17:03.800 --> 0:17:06.040 Well, this leads into something that I want to ask 0:17:06.080 --> 0:17:09.440 you actually, which is you're doing all these different things now, 0:17:09.440 --> 0:17:11.760 and you clearly have ambitions to be a sort of 0:17:11.800 --> 0:17:16.280 like one stop shop for everyone's financial needs. How do 0:17:16.320 --> 0:17:20.880 you actually decide which new products or which new capabilities 0:17:21.200 --> 0:17:24.720 to expand into. Is it a case of like, Okay, 0:17:24.720 --> 0:17:27.280 well people are on the platform, they're trading, so maybe 0:17:27.320 --> 0:17:30.639 they would be interested in some sort of robo advisory service. 0:17:30.760 --> 0:17:33.320 Or is it you look at the competitive landscape and 0:17:33.359 --> 0:17:36.440 you think like, well, this company has you know, they're 0:17:36.520 --> 0:17:38.879 using cobol or something like that, and they can't do 0:17:39.359 --> 0:17:41.080 what we can do with a new tech stack, and 0:17:41.119 --> 0:17:44.040 so there's an opportunity there. How do you assess all 0:17:44.080 --> 0:17:47.040 those different opportunities and then ultimately decide what you want 0:17:47.080 --> 0:17:47.320 to do. 0:17:47.880 --> 0:17:53.160 Yeah, basically our business strategy falls into three buckets, and 0:17:53.240 --> 0:17:56.560 you can kind of align that with time horizon arcs. 0:17:56.680 --> 0:17:58.800 So we have sort of like a near term arc 0:17:59.440 --> 0:18:02.320 which we're in the climax of right now, which is 0:18:02.760 --> 0:18:05.960 to be the number one platform for active traders. If 0:18:05.960 --> 0:18:08.000 you're an active trader, you know, if you're one of 0:18:08.040 --> 0:18:11.040 these people that has the six terminals in front of 0:18:11.080 --> 0:18:13.600 you and you've got your battle station, we want to 0:18:13.600 --> 0:18:16.600 make it clear that you're at a disadvantage using any 0:18:16.640 --> 0:18:19.639 other platform. And these folks are at the frontier of 0:18:19.680 --> 0:18:24.560 technology and innovation. So twenty four Robinhood, twenty four hour 0:18:24.640 --> 0:18:28.439 Market is an example there. It's not just about better 0:18:28.520 --> 0:18:31.680 tools and interfaces, although that's a part of it. It's 0:18:31.720 --> 0:18:35.200 also having things that are not available elsewhere. Twenty four 0:18:35.200 --> 0:18:38.600 hour market being probably the best example there, and that's 0:18:38.640 --> 0:18:42.080 become very, very popular. And you're literally at a disadvantage 0:18:42.119 --> 0:18:44.199 if you're not using Robinhood because if you need to 0:18:44.240 --> 0:18:47.760 manage your risk on a Sunday night, our platform offers 0:18:47.800 --> 0:18:51.240 access to equity markets and you know those aren't easily 0:18:51.280 --> 0:18:54.399 found elsewhere. So that's the near term mark. Then we 0:18:54.480 --> 0:18:57.280 have sort of a medium five year arc, which is 0:18:57.280 --> 0:18:59.840 being number one in wallet share for the next generation 0:19:00.320 --> 0:19:03.399 and that's millennials and Gen Z for now. But we 0:19:03.440 --> 0:19:06.800 don't want to also get stuck in the millennial and 0:19:06.920 --> 0:19:09.639 Gen Z bucket. We always want to be relevant to 0:19:09.640 --> 0:19:12.199 the needs of the next generation as they evolve. 0:19:12.560 --> 0:19:16.880 Of course, Wait, what generation are you saying you are 0:19:17.240 --> 0:19:19.920 of Gen XENX. 0:19:19.320 --> 0:19:21.560 Well, you're in the other direction, Yeah, you're the other 0:19:21.920 --> 0:19:22.560 gen Alpha. 0:19:22.680 --> 0:19:24.240 I thought you were saying that you're really young. 0:19:24.320 --> 0:19:26.440 Oh no, no, no, I want to make sure that there's 0:19:26.480 --> 0:19:28.919 still financial services that cater to old people. 0:19:30.000 --> 0:19:33.800 Gen X. I would say it's a simplification. I mean 0:19:33.800 --> 0:19:37.119 there's Gen X and baby boomers that love Robinhood. I 0:19:37.200 --> 0:19:40.840 think the common ground is actually less your age and 0:19:40.920 --> 0:19:44.240 more how digitally savvy you are. Like, if you're comfortable 0:19:44.359 --> 0:19:48.399 doing digital banking and financial services on your phone, you know, 0:19:48.440 --> 0:19:51.040 you could be eighty years old and really enjoy Robinhood. 0:19:51.080 --> 0:19:54.800 But you know, some people, particularly as they're older, prefer 0:19:54.880 --> 0:19:57.679 to go in person and talk to a human and 0:19:58.040 --> 0:20:01.359 I think we're a laggard in developed those types of services. 0:20:01.840 --> 0:20:05.399 So the second arc medium term mark of being the 0:20:05.400 --> 0:20:08.240 place where you put all of your money, we basically 0:20:08.280 --> 0:20:12.920 look at a few things there. One is where are 0:20:12.920 --> 0:20:15.639 people withdrawing to if you take your money out of 0:20:15.760 --> 0:20:19.760 Robinhood to do something, can we just better serve that 0:20:19.960 --> 0:20:22.920 within our ecosystem. So you know, for example, a lot 0:20:22.920 --> 0:20:25.359 of people took money off of Robinhood to pay their bills. 0:20:26.000 --> 0:20:28.760 So we saw that and we thought that was a 0:20:28.760 --> 0:20:31.280 great opportunity to just allow them to pay their bills 0:20:31.720 --> 0:20:35.200 via us. So we launched the Robinhood Gold Card, which 0:20:35.240 --> 0:20:37.880 you know, in my opinion I'm biased, is the best 0:20:37.880 --> 0:20:40.720 credit card on the market by a wide margin. Three 0:20:40.760 --> 0:20:43.680 percent cash back on all categories, which you have to 0:20:43.720 --> 0:20:46.760 be a high net worth individual to get coupled with 0:20:46.840 --> 0:20:49.800 a very nice user interface that lets you create virtual 0:20:49.880 --> 0:20:53.160 cards on demand. You can add your whole family help 0:20:53.240 --> 0:20:56.520 them build their credit. So that's just an example of 0:20:56.840 --> 0:20:58.880 how we think about it. But for each of these 0:20:58.920 --> 0:21:02.840 products individual, I don't think it's enough to come up 0:21:02.880 --> 0:21:05.000 with the category. I think we have to have a 0:21:05.040 --> 0:21:08.119 great idea for how we can make the economics better 0:21:08.160 --> 0:21:11.600 for users and also how to make the user experience better. 0:21:11.800 --> 0:21:14.199 And when we have that combination, I think that's the 0:21:14.359 --> 0:21:19.040 ingredient to a successful Robinhood product. I should mention the 0:21:19.080 --> 0:21:21.440 third arc because that's the long term away and it's 0:21:21.480 --> 0:21:24.600 pretty relevant here given the event we just had in 0:21:24.640 --> 0:21:27.760 the South of France. It's called building the number one 0:21:27.800 --> 0:21:30.520 global financial ecosystem and what that. 0:21:30.560 --> 0:21:31.760 Means all just that. 0:21:32.080 --> 0:21:34.399 Yes, so that's a long term mark, so it's going 0:21:34.480 --> 0:21:38.919 to take a while, like ten years, But basically it 0:21:39.000 --> 0:21:44.399 involves expanding Robinhood across two linearly independent vectors. One is 0:21:44.680 --> 0:21:47.919 from US only to fully global and the other is 0:21:47.960 --> 0:21:51.440 from retail only to business and institutional, and that's where 0:21:51.440 --> 0:21:56.400 we get into really interesting platform aspects like tokenization. 0:21:56.880 --> 0:22:00.280 So let me talk to me about equity token here's 0:22:00.280 --> 0:22:04.040 my question, in what year tell me about equity tokenization. 0:22:04.480 --> 0:22:07.280 You know, I'm thinking about like a stable coin is 0:22:07.320 --> 0:22:11.199 a tokenized dollar, right, so obviously a you could do 0:22:11.280 --> 0:22:14.280 the same thing where you have like a stock, tesla 0:22:14.359 --> 0:22:16.840 whatever in crypto form, et cetera, and it trades on 0:22:16.920 --> 0:22:20.320 a chain twenty four to seven. In what year will 0:22:20.400 --> 0:22:24.439 I be able to trade any stock twenty four to 0:22:24.440 --> 0:22:25.560 seven on chain? 0:22:26.200 --> 0:22:30.359 Well, if you are a European customer, definitely twenty twenty five. 0:22:30.840 --> 0:22:33.879 So what we announce in our event to catch a 0:22:33.880 --> 0:22:38.800 token in the South of France is stock tokens by Robinhood, 0:22:39.119 --> 0:22:45.240 which are essentially tokenized US equities and ETFs. We also 0:22:45.840 --> 0:22:49.600 did a giveaway of tokenized shares of SpaceX, which is 0:22:49.680 --> 0:22:54.639 very exciting, and that the technology for both is ready 0:22:54.800 --> 0:22:58.600