PiCK

Robinhood Unveils Testnet for Ethereum Layer-2 ‘Robinhood Chain’

YM Lee

Summary

Robinhood said it has launched a public testnet for Robinhood Chain, an Ethereum-based layer-2 network.
Robinhood Chain is designed to expand tokenized real-world assets and digital assets on-chain and support financial-infrastructure-grade use cases, the company said.
Robinhood said it is expanding into an on-chain infrastructure operator through a mainnet launch later this year, a tokenized stocks and ETFs strategy, and Arbitrum-based infrastructure.

Robinhood, the U.S. online stock and crypto trading platform, has launched a public testnet for its Ethereum-based layer-2 network, ‘Robinhood Chain.’

According to Cointelegraph on the 10th (local time), Robinhood has opened the testnet of its in-house layer-2 network—built on Arbitrum technology—to developers. The network aims to bring tokenized real-world assets and digital assets further on-chain.

Robinhood said the testnet is compatible with standard Ethereum development tools and provides network access points and developer documentation. Integration with early infrastructure partners is also under way.

The company said the chain was designed with financial-infrastructure-grade use cases in mind, including 24/7 trading, bridging functionality, self-custody, a tokenized asset platform, lending markets, and a perpetual futures exchange. The mainnet is targeted for launch later this year, and the testnet phase is set to include stock-token support and integration with Robinhood Wallet.

Johann Kerbrat, Robinhood’s Senior Vice President and General Manager of Crypto and International, said, “This testnet is a step toward laying the foundation for an ecosystem of tokenized real-world assets,” adding that it would “help developers tap into decentralized finance (DeFi) liquidity within the Ethereum ecosystem.”

The launch is seen as an extension of Robinhood’s push to expand beyond a pure crypto trading service into operating on-chain infrastructure. Robinhood previously announced a strategy to tokenize about 500 U.S. stocks and exchange-traded funds (ETFs) using Arbitrum.

A broader trend is emerging in which major exchanges build both user interfaces and on-chain infrastructure. Coinbase operates its own layer-2 network, Base, while Kraken is developing Ink, an Optimism-based layer-2 network.

Meanwhile, Robinhood has faced criticism in past periods of heightened market volatility over system outages and its payment for order flow structure. Vlad Tenev, Robinhood’s Chief Executive Officer (CEO), said in January that tokenized stocks could help mitigate trading halts through a blockchain-based real-time settlement framework.