Overseas demand for U.S equities is growing, says Kraken senior VP Johan Kerbrart

§ 01 Executive Snapshot

• What: Overseas demand for U.S. equities is increasing, driven by tokenization and 24/7 trading.
• Who: Johann Kerbrat, Senior VP at Robinhood, and the broader trading community.
• Why it matters: The shift towards global portfolio strategies signifies a potential transformation in how investors access U.S. markets, particularly for AI-related stocks.

§ 02 Key Developments

• Global demand for U.S. equities, especially AI-related stocks, is rising among overseas investors, but access remains more limited outside the United States.
• Robinhood has begun offering tokenized stock products in Europe and aims to open private equity and other traditionally restricted assets to a broader base of investors.
• Regulation in the U.S. has been improving, which may lead to greater engagement with international investors.

§ 03 Strategic Context

• The trend towards tokenization and instant settlement could disrupt traditional brokerage models, allowing for more global investment strategies.
• The availability of 24/7 trading platforms is facilitating a shift from country-specific investment strategies to global allocations.

§ 04 Strategic Implications

• Immediate market consequences include increased competition among trading platforms to offer innovative features like tokenization and continuous trading.
• Long-term implications may involve a significant change in how investors interact with equity markets, moving towards a more inclusive and accessible investment environment.

§ 05 Risks & Constraints

• Regulatory constraints in the U.S. could still pose challenges to international expansion and adoption of new trading models.
• Competition from established platforms like OKX, Bybit, and Coinbase may hinder Robinhood's growth in the spot trading volume.

§ 06 Watchlist / Forward Signals

• Monitoring Robinhood's rollout of tokenized assets and its expansion into private equity will provide insight into its market strategy.
• Future regulatory developments in the U.S. that affect trading practices will signal the potential for broader adoption of international trading platforms.