SKN | Robinhood Launches Ethereum-Based ‘Robinhood Chain’ to Power 24/7 Tokenized Markets

Key Points:

• Robinhood has launched a public testnet for Robinhood Chain, an Ethereum-based layer-2 built on Arbitrum.
• The network is designed to enable 24/7 trading and self-custody of tokenized stocks, ETFs and other real-world assets.
• The initiative signals a strategic shift as Robinhood moves deeper into blockchain infrastructure and tokenized finance.

Robinhood has formally expanded beyond offering crypto trading into building blockchain infrastructure of its own, unveiling a public testnet for “Robinhood Chain,” an Ethereum-based layer-2 network designed to support tokenized equities and continuous market access. The move reflects a broader push to integrate onchain architecture directly into the firm’s trading ecosystem rather than treat digital assets as a standalone product.

Announced at Consensus Hong Kong, the new network is built on Arbitrum, which settles on Ethereum. A broader rollout is expected later this year following further testing and developer integration.

From Brokerage Platform to Onchain Infrastructure

Robinhood’s decision to build a dedicated layer-2 network suggests a structural shift in strategy. Rather than relying solely on third-party blockchain infrastructure, the company is seeking to control execution, compliance logic and asset issuance within its own optimized environment.
Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto, emphasized that the goal was not simply scaling Ethereum transactions. Instead, the firm wanted the base-layer security and liquidity of Ethereum while retaining the ability to customize the chain for tokenized traditional assets.
This approach positions Robinhood Chain as application-specific infrastructure rather than a general-purpose high-speed network.

Scaling Tokenized Equities

Robinhood previously launched tokenized versions of nearly 2,000 U.S. stocks and ETFs for European users, issued on Arbitrum. Those assets support dividend distribution and extended trading hours, though total onchain value remains modest at approximately $15 million.
With Robinhood Chain, the company aims to significantly expand that footprint. The network will allow 24/7 trading of tokenized equities and ETFs, enable self-custody through Robinhood’s crypto wallet, and provide bridges to decentralized finance applications across the Ethereum ecosystem.
By embedding compliance controls directly into the protocol layer, Robinhood can better accommodate jurisdictional requirements and regulatory standards — a critical factor for tokenized securities.

The Evolution of Layer-2 Networks

The launch comes as Ethereum’s roadmap increasingly emphasizes improvements to its base layer, reducing congestion and transaction costs. As those upgrades advance, the narrative around layer-2 networks is evolving.
Ethereum co-founder Vitalik Buterin has argued that rollups are likely to specialize rather than simply maximize throughput. Robinhood’s chain reflects that philosophy, focusing on regulated financial products instead of competing directly with high-frequency trading environments.
The firm’s strategy suggests it sees long-term value in creating a customized blockchain tailored to tokenized equities and structured financial assets.

Institutional Tokenization Momentum

Robinhood’s move aligns with a broader industry trend toward tokenized real-world assets. Financial institutions increasingly view blockchain technology as an upgrade to legacy settlement systems, offering programmable compliance, near-instant clearing and continuous trading access.
If tokenized equities achieve sufficient liquidity, traditional settlement cycles could compress significantly, altering the economics of brokerage operations and capital markets infrastructure.

Strategic Implications

Robinhood Chain represents a bet that tokenization will become core financial plumbing rather than a niche crypto feature. By building its own blockchain environment, Robinhood gains greater operational control and flexibility while positioning itself to capture value from onchain trading flows.

The central question now is adoption. Liquidity, regulatory clarity and user trust will determine whether tokenized equities scale meaningfully. If they do, Robinhood’s infrastructure-first approach could give it an early-mover advantage in the next generation of market architecture.