Robinhood Launches Ethereum Layer-2 Testnet, Paving the Way for Tokenized Assets

Robinhood has officially launched the public testnet for its new Ethereum Layer-2 network, Robinhood Chain, built on Arbitrum technology. This move signifies a significant expansion of the brokerage's crypto and on-chain finance ambitions, aiming to bring millions of users onto the blockchain and facilitate the trading of tokenized real-world assets.

Key Takeaways

• Robinhood Chain, an Ethereum Layer-2 built on Arbitrum, has entered its public testnet phase.

• The network is designed to support the tokenization of real-world assets, including equities and ETFs.

• Developers can now build and test applications on the network, with a mainnet launch planned for later in 2026.

• The initiative aims to bridge traditional finance with decentralized finance (DeFi) and offer 24/7 trading capabilities.

Robinhood Chain: A New Frontier for Tokenization

Robinhood Chain is engineered to support a wide range of tokenized assets, including stocks, exchange-traded funds (ETFs), and other traditional financial instruments. This initiative builds upon Robinhood's previous steps into tokenization, such as rolling out tokenized U.S. stocks and ETFs for European users. The new network aims to provide a secure and efficient environment for these assets, allowing for 24/7 trading and self-custody through Robinhood's crypto wallet. Users will also be able to bridge assets to and from other chains and decentralized finance (DeFi) applications on Ethereum.

Beyond Scaling: A Focus on Customization and Real-World Assets

While Layer-2 networks are often associated with scaling Ethereum, Robinhood's approach emphasizes customization and application-specific environments. Johann Kerbrat, Robinhood's senior vice president and general manager of crypto, stated that the chain was not primarily about scaling Ethereum or faster transactions, but rather about creating a secure environment with Ethereum's security and the liquidity of EVM chains, while allowing for customization optimized for tokenized traditional assets. This focus on tokenized equities and regulated financial products positions Robinhood Chain to cater to specific compliance requirements across different jurisdictions.

Developer Ecosystem and Future Plans

The public testnet allows developers to access network entry points, documentation, and standard Ethereum development tools. Robinhood plans to expand testnet functionality to include test-only assets, such as stock tokens, and deeper integrations with its wallet and other on-chain financial tooling. The company is also offering incentives, including a pledge of $1 million to developers, to foster ecosystem growth. Integrations with key partners like Chainlink, LayerZero, and Alchemy are already in development, signaling strong institutional interest. A mainnet launch is anticipated later in 2026.

Bridging Traditional and Decentralized Finance

Robinhood's move into its own Layer-2 network reflects a broader trend of financial institutions and exchanges building their own blockchain infrastructure. This strategy aims to control the user experience and underlying technology, potentially dissolving barriers between traditional and on-chain financial systems. By embedding speed and near-zero fees, Robinhood aims to offer new financial instruments and create a seamless on-ramp to both the crypto economy and the broader financial system.

Sources

• Robinhood (HOOD) starts testing its own blockchain as crypto push deepens, CoinDesk.

• Robinhood’s Ethereum Layer-2 Enters Public Testnet: Why It Matters, Yahoo Finance.

• Robinhood’s Ethereum Layer-2 Network Enters Public Testnet Phase, Decrypt.

• Robinhood Chain Testnet Goes Live: Ethereum L2 Targets $1M Builders and RWA Boom, CryptoNinjas.

• Robinhood launches Ethereum layer-2 testnet for tokenized assets — TradingView News, TradingView.