- Robinhood opens a public testnet for its Ethereum layer-2 Robinhood Chain, aimed at developers building perpetual futures and lending tools.
- The company expands its stock token strategy, using Robinhood Chain and Arbitrum-based technology to link tokenized assets with brokerage services.
Robinhood is opening its new Ethereum layer-2 network to outside developers, marking a notable step in the company’s broader push into decentralized finance. Alongside that move, the brokerage has launched a public testnet for Robinhood Chain, giving developers a chance to trial applications in a controlled environment before any full-scale rollout. The effort is designed to support experiments with stock tokens and other blockchain-based products, while also tying the technology directly into Robinhood’s existing business.
Robinhood Chain testnet targets developers and institutions
The newly announced testnet for Robinhood Chain is intended as a low-risk setting where developers can evaluate the network’s technical capabilities as it becomes integrated into Robinhood’s retail brokerage platform. According to the company, this phase is not just a technical milestone but a way to gather feedback and data that will shape how Robinhood uses blockchain infrastructure in its core operations.
Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, said the testnet is geared toward builders experienced in areas such as perpetual futures exchanges and lending platforms. These developers can begin deploying and refining decentralized finance applications, while institutions can explore whether Robinhood’s infrastructure could support products of their own in the future. The aim is to see how different types of market participants might use the network once it moves beyond testing.
Kerbrat emphasized that the company sees this stage as crucial to its long-term plan. Insights from the testnet will guide how Robinhood designs services like continuous, around-the-clock trading, with crypto infrastructure acting as the base layer. The firm is looking to understand not only performance and scalability, but also how blockchain-based assets can fit within regulatory and operational frameworks already used in traditional finance.
Expanding stock tokens and rethinking core systems
A major focus of Robinhood’s blockchain strategy is the development and expansion of stock tokens. Eight months before the testnet announcement, the company introduced stock tokens for customers in Europe, giving them synthetic exposure to U.S. equities and private companies. Those products are meant to mirror the performance of underlying assets without conferring direct ownership, while still allowing investors to gain similar economic exposure.
Robinhood now wants to take that model to as many regions as it can, subject to local regulatory conditions. Kerbrat noted that the company intends to proceed cautiously, particularly as authorities in the United States continue to evaluate tokenized versions of real-world assets. The Securities and Exchange Commission is still working on guidance for digital representations of traditional instruments, and access to such tokenized products remains limited for U.S. investors.
Against that backdrop, Robinhood is positioning Robinhood Chain as more than a simple scaling solution. Kerbrat said the firm does not intend for the network to be just another layer-2 that processes transactions faster or more cheaply. Instead, Robinhood plans to use the underlying technology to rebuild some of its internal systems, including those tied directly to stock token trading. The network is being designed to support a model that replicates much of what Robinhood already offers in the United States, while also enabling services that extend beyond conventional crypto spot trading.
The company views stock tokens on Robinhood Chain as a foundation for potential 24/7 markets, where trading no longer needs to align with traditional exchange hours. In that vision, crypto-based infrastructure supports continuous activity and settlement, while Robinhood works within regulatory constraints to ensure the products resemble familiar brokerage offerings.
Robinhood’s layer-2 approach and the Arbitrum connection
While several major crypto platforms have turned to OP Labs’ technology stack—used in Optimism—to build their own layer-2 networks, Robinhood has opted for a different path. Coinbase and Kraken both rely on OP Labs for their scaling solutions, but Robinhood has chosen to model its network on Arbitrum, an Ethereum scaling technology developed by Offchain Labs.
By building on an Arbitrum-style framework, Robinhood is aligning Robinhood Chain with an existing ecosystem that emphasizes developer accessibility and compatibility with Ethereum-based tools. Offchain Labs co-founder and CEO Steven Goldfeder said Arbitrum’s technology positions Robinhood Chain to contribute to what he described as the next phase of tokenization. That includes tokenized versions of traditional financial instruments as well as newer asset types that can live entirely on-chain.
This alignment with Arbitrum indicates that Robinhood wants developers to be able to use familiar programming environments and infrastructure. For teams already building on Ethereum and Arbitrum, porting or adapting applications to Robinhood Chain may involve relatively few changes. That could help attract projects that specialize in derivatives, lending, and other advanced financial products, which are central to the testnet’s target audience.
At the same time, Robinhood’s strategy suggests it is looking to differentiate its network in how it is used, rather than in the base technology alone. Where other layer-2 initiatives are focused primarily on throughput and transaction costs, Robinhood is placing emphasis on direct integration with brokerage services and real-world asset exposure. Crypto-native firms such as Coinbase are also pursuing tokenization, but Robinhood’s approach is tightly connected to its existing customer base and the stock token model it has already rolled out in Europe.
Conclusion
Robinhood’s launch of a public testnet for Robinhood Chain marks a significant extension of its push into decentralized finance and tokenized assets. The company is inviting developers and institutions to experiment with applications on its Ethereum layer-2 network, while it evaluates how the technology can support services like stock tokens and continuous trading. By basing its approach on Arbitrum and aiming to rebuild parts of its internal systems, Robinhood is trying to position blockchain infrastructure as a core component of its brokerage operations rather than a peripheral add-on. How regulators respond to tokenization, and how developers use the testnet, will help determine the pace and shape of any broader rollout.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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