Robinhood is expanding its presence in the decentralized finance space by launching a new Ethereum layer-2 testnet, built on Arbitrum technology. This strategic move aims to streamline tokenized stocks and bolster DeFi infrastructure, aligning with similar advancements by other major exchanges.
The newly introduced Robinhood Chain testnet is now available to developers, offering essential network access points and comprehensive documentation found at docs.chain.robinhood.com. It is compatible with standard Ethereum development tools and has already secured early integrations with infrastructure partners. Designed with "financial-grade" applications in mind, the chain supports 24/7 trading, seamless bridging, self-custody, and decentralized products such as platforms for tokenized assets, lending markets, and perpetual futures exchanges. A full mainnet release is anticipated later this year, featuring testnet-exclusive assets like stock-style tokens and enhanced integration with Robinhood Wallet.
Johann Kerbrat, Robinhood's Senior Vice President and General Manager of Crypto and International, highlighted that the Robinhood Chain testnet sets the stage for "an ecosystem that will define the future of tokenized real-world assets," enabling developers to access DeFi liquidity within the Ethereum network.
This initiative represents a significant shift for Robinhood, transitioning from merely facilitating crypto trades to establishing its own onchain infrastructure. This follows its recent decision to tokenize nearly 500 U.S. stocks and ETFs on Arbitrum, reflecting a broader strategy focused on real-world asset tokenization.
Robinhood's approach is part of a larger trend where exchanges aim to manage both the user interface and the underlying blockchain technology. Other exchanges, such as Coinbase, are also pursuing similar strategies, having developed their Base L2 platform and announced plans to roll out tokenized equities by December 2025. Similarly, Kraken is developing its own L2 network, Ink, alongside xStocks tokenized equities.
Despite its progressive steps, Robinhood has encountered challenges in the past, including regulatory scrutiny and criticism for system outages during market volatility. The company's reliance on payment for order flow in equities, where brokers receive rebates from market-making firms for routing customer orders, has also been a point of contention. However, Robinhood CEO Vlad Tenev believes that tokenized stocks could mitigate trading freezes, leveraging the real-time settlement capabilities of blockchain technology.