Key takeaways

• Bitcoin has demonstrated stability over the past year despite market fluctuations.
• After-hours trading provides investors with the ability to respond to news outside of standard trading hours.
• Prediction markets are evolving from speculative tools to strategic financial instruments for hedging.
• AI investment contracts offer a simpler alternative to traditional stock picking for investors.
• Robinhood’s internal structure allows for innovation across multiple product lines while maintaining a unified user experience.
• AI is revolutionizing the coding process, enhancing both code writing and review.
• AI is utilized by Robinhood not only internally but also to improve customer-facing features like real-time market updates.
• The rapid advancement of AI technology is significantly impacting product development timelines.
• Increased competition in the crypto space is beneficial to consumers by reducing fees and fostering innovation.
• Robinhood is developing a Layer 2 solution to improve access to real-world assets and transaction settlement.
• The integration of AI in financial products is reshaping the landscape of investing.
• Robinhood’s focus on accessibility and education aims to empower retail investors.
• The company is leveraging AI to provide real-time updates and insights to its users.
• Robinhood’s innovative approaches are positioning it at the forefront of 24/7 trading and tokenization.
• The use of AI in financial technology is enhancing the efficiency and capabilities of development teams.

Guest intro

Johann Kerbrat is the SVP and General Manager of Crypto and International at Robinhood. Before joining Robinhood in 2021, he served as Head of Engineering for the core product division at the crypto exchange Gemini. Since then, he has led the expansion of Robinhood’s digital asset offerings, including the acquisition of Bitstamp and the launch of tokenized stocks.

Bitcoin’s resilience in volatile markets

• Bitcoin has remained stable over the past twelve months despite market volatility.

• It’s been going up and down but so far it’s been fairly resilient if you look at the past twelve months since last February.

  — Johann Kerbrat

• Understanding the broader market conditions is crucial for assessing Bitcoin’s performance.
• Bitcoin’s resilience is indicative of its maturity as a digital asset.
• Market events over the past year have tested Bitcoin’s stability.
• Investors continue to view Bitcoin as a reliable store of value.
• The digital asset’s performance reflects its growing acceptance in the financial ecosystem.
• Bitcoin’s stability amidst fluctuations highlights its potential as a long-term investment.

The role of after-hours trading

• After-hours trading allows investors to react to news and market movements outside regular hours.

• It’s really interesting because… on Sundays your future will open a bit before the market and so the people that are a bit less sophisticated were using were waiting for… the stock market to open.

  — Johann Kerbrat

• This trading mechanism provides flexibility for investors to make timely decisions.
• Understanding how after-hours trading functions is essential for different types of investors.
• It allows for immediate responses to global events that occur outside US market hours.
• After-hours trading can influence the opening prices of stocks.
• This trading period is crucial for investors looking to capitalize on overnight news.
• The ability to trade after hours is a significant advantage for retail investors.

Prediction markets and AI investments

• Prediction markets are increasingly used for hedging rather than just speculation.

• I think it’s a combination right like there is definitely people that are using it more because they are interested into sports for example but we see a lot of people using some of the new contracts that we have…

  — Johann Kerbrat

• Contracts on AI investments provide a simpler and more flexible option for investors.

• A contract on AI is a lot simpler and has only like so many outcomes for the customer and so I think that’s really important and that gives a lot of this investor another option for them to invest in the market basically.

  — Johann Kerbrat

• These markets offer strategic financial applications beyond traditional investments.
• The evolution of prediction markets is driven by advancements in AI.
• Investors are finding new ways to leverage prediction markets for financial gain.
• The simplicity of AI contracts appeals to investors seeking straightforward investment options.
• Prediction markets are becoming integral to modern financial strategies.

Robinhood’s innovative internal structure

• The company operates like multiple startups, fostering innovation across product lines.

• Basically every of this product line are almost a little startup within the company… we wanna create this cohesive UI and UX so that you don’t feel like you’re jumping between different apps.

  — Johann Kerbrat

• This structure allows for efficient product development while maintaining a cohesive user experience.
• Robinhood’s approach encourages creativity and agility within teams.
• The startup-like environment supports rapid innovation and adaptation.
• Maintaining a unified user interface is crucial for customer satisfaction.
• This organizational model enables Robinhood to quickly respond to market changes.
• The company’s structure is designed to support continuous growth and expansion.

AI’s impact on coding and product development

• AI is significantly enhancing the coding process, improving code review and development.

• Our engineers are all using AI to not just write code but review code… we see more and more of our code being shipped through AI or by AI directly.

  — Johann Kerbrat

• The acceleration of AI is impacting team capabilities and product timelines.

• It’s crazy to think you know one year ago twelve months ago how far we’ve come along with AI… the amount of tools you can build within just a weekend just playing with AI has been really cool.

  — Johann Kerbrat

• AI integration is transforming engineering practices within the company.
• The use of AI tools is streamlining the development process.
• AI’s role in coding is leading to faster and more efficient product releases.
• The technology is enabling teams to achieve more with fewer resources.

AI’s dual application in Robinhood

• Robinhood uses AI internally and for enhancing customer features like real-time updates.

• For us AI is not just a tool for internal usage we’re also using it for external customer feature… we create this digest that we give you for any stock any crypto and it’s updated like almost real time.

  — Johann Kerbrat

• AI improves both internal processes and customer-facing features.
• Real-time market updates provide users with timely and relevant information.
• The dual application of AI is a competitive advantage for Robinhood.
• AI-driven features enhance the overall user experience on the platform.
• The technology supports Robinhood’s mission to empower retail investors.
• AI integration reflects the company’s commitment to innovation and customer service.

The benefits of competition in the crypto space

• Increased competition among companies in the crypto space benefits consumers.

• I think the more competition the better it is for the customer right you reduce fees it creates innovation.

  — Johann Kerbrat

• Competition drives down fees and encourages innovation.
• Consumers have more choices and better services due to competitive pressures.
• The crypto industry’s competitive landscape fosters technological advancements.
• Companies are motivated to improve offerings to attract and retain customers.
• Competition leads to the development of new and improved financial products.
• The dynamic market environment is advantageous for both companies and consumers.

Robinhood’s Layer 2 solution for real-world assets

• Robinhood is building a Layer 2 solution to enhance access to real-world assets.

• We found a combination of the two we wanted to have the decentralization of Ethereum the security of Ethereum and also the liquidity that is available in all the EVM space and so that’s why we decided to do an L2 that way we can customize everything that we wanna do to really make the Robinhood chain like the best real world asset chain.

  — Johann Kerbrat

• The solution aims to improve transaction settlement and user experience.
• Robinhood’s focus is on decentralization, security, and liquidity.
• The Layer 2 development addresses challenges in accessing US stocks and ETFs.
• This strategic move aligns with Robinhood’s goal to expand international access.
• The technology enhances the efficiency and reliability of transactions.
• Robinhood’s innovation in Layer 2 solutions positions it as a leader in the market.