Robinhood Introduces Ethereum Layer-2 Testnet for Tokenized Equities

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TLDR

  • Robinhood has unveiled a public testnet for Robinhood Chain, an Ethereum layer-2 network leveraging Arbitrum technology
  • This network is designed to facilitate continuous (24/7) trading of tokenized stocks, ETFs, and other real-world assets, offering self-custody options
  • The mainnet is slated for release in late 2026, following a six-month period of private testing
  • The initiative aims to integrate tokenized equities with decentralized finance (DeFi) applications within the Ethereum ecosystem
  • Robinhood has already tokenized nearly 2,000 U.S. stocks and ETFs on Arbitrum, although their total value currently trails that of competitors

Robinhood made its Robinhood Chain testnet accessible to developers on Wednesday. This new Ethereum layer-2 network utilizes Arbitrum technology to support tokenized financial assets.

The testnet offers developers network access points and comprehensive documentation, available at docs.chain.robinhood.com. It is compatible with standard Ethereum development tools and features initial integrations from various infrastructure partners.

Robinhood engineered the chain specifically for financial applications. These include continuous trading, seamless asset transfers between different chains, and self-custody capabilities via Robinhood Wallet.

The company intends to introduce functionalities such as decentralized lending markets and perpetual futures exchanges. Tokens representing stocks will be available on the testnet prior to the mainnet’s official launch.

Johann Kerbrat, senior vice president and general manager of crypto at Robinhood, stated that the testnet lays the groundwork for an ecosystem centered on tokenized real-world assets.

The chain will enable developers to tap into DeFi liquidity within the broader Ethereum ecosystem. Kerbrat discussed the project during CoinDesk’s Consensus Hong Kong conference.

Building Financial Infrastructure

Robinhood has expanded its operations beyond basic cryptocurrency trading. The company now manages its own blockchain infrastructure dedicated to tokenized assets.

Last year, the firm tokenized nearly 2,000 U.S. stocks and ETFs on Arbitrum. According to data from Entropy Advisors on Dune Analytics, these tokens collectively hold approximately $15 million in value.

This valuation lags behind prominent tokenized equity providers like xStocks and Ondo Global Markets. European users can already engage in trading these tokenized versions of stocks, benefiting from dividend payments and extended market hours.

Kerbrat elaborated that Robinhood sought robust security and ample liquidity. The company also required a customizable chain optimized for traditional financial assets.

This platform aligns with a growing trend where exchanges oversee both user interfaces and underlying blockchain infrastructure. Coinbase, for instance, operates its Base layer-2 and announced its plans for tokenized equities in December 2025.

Competition and Compliance

Kraken employs a similar strategy with its Optimism-based Ink network. These exchanges are developing comprehensive, end-to-end systems for tokenized trading.

Robinhood CEO Vlad Tenev suggested in January that tokenized stocks could help prevent trading halts. Blockchain technology facilitates real-time settlement, a feature absent in conventional systems.

The company has previously faced criticism regarding system outages during periods of market volatility. Robinhood also drew scrutiny for its payment for order flow model in equity trading.

Kerbrat noted that layer-2 networks are now serving purposes beyond merely scaling Ethereum. Vitalik Buterin, an Ethereum co-founder, has endorsed this perspective on specialized chains.

Robinhood Chain will concentrate on tokenized equities and regulated financial products. Compliance requirements, which vary by jurisdiction, can be integrated directly into the chain’s design.

The company initially revealed its blockchain ambitions in June 2025. Development proceeded privately for six months before the public testnet became available.

The mainnet is projected to launch later in 2026. Developers can now commence building applications using test assets and stock tokens ahead of the official release.