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Robinhood launches public testnet for Arbitrum-based Robinhood chain

Robinhood introduced a public testing platform for Robinhood Chain, shifting focus from providing brokerage services to developing specific on-chain systems. This Ethereum Layer-2, constructed using Arbitrum’s optimistic rollup technology, aims to enable the tokenization of stocks, ETFs, and various tangible assets, and features a pledge of $1 million to support the 2026 Arbitrum Open House developer initiative .

Robinhood Chain is designed as an EVM-compatible Layer-2 network built on optimistic rollup technology. In practical terms, that means it inherits Ethereum’s base-layer security while aiming to lower transaction costs and increase throughput. The newly launched public testnet is geared toward developers, offering open documentation and onboarding tools that allow for rapid prototyping and smart contract deployment.

To support this infrastructure, Robinhood has assembled a partner stack that mirrors the needs of institutional-grade markets. Chainlink provides price oracles and real-time valuation feeds, helping ensure reliable market data for tokenized assets. Alchemy and Allium contribute node infrastructure and data indexing services, while LayerZero handles cross-chain messaging and bridging. Meanwhile, TRM Labs supplies compliance, transaction monitoring, and risk assessment tools—an essential layer for regulated financial activity.

Rather than positioning the chain as a general-purpose DeFi venue, Robinhood emphasizes 24/7 trading, near-real-time settlement, and integration with its self-custody wallet. At the same time, the network maintains connectivity to Ethereum’s broader DeFi liquidity.

Robinhood strategy and testnet infrastructure

Robinhood is moving beyond brokerage services into infrastructure ownership, seeking greater control over compliance workflows, settlement mechanics, and the end-user experience for tokenized financial products. If tokenized stocks and ETFs gain traction, the implications could be meaningful: 24/7 trading would remove traditional market-hour constraints, while faster settlement cycles could reduce the operational burdens associated with T+2 clearing risk.

By leveraging its large retail user base alongside a purpose-built Layer-2 focused on regulated assets, Robinhood is attempting to differentiate itself from general-purpose rollups. The partner ecosystem—covering data integrity, cross-chain liquidity, and compliance oversight—reflects the specific requirements of real-world asset markets rather than purely crypto-native trading.

Looking ahead, developer engagement and the timeline for a potential mainnet launch will be critical indicators of momentum. The speed at which tokenized equities and ETFs migrate on-chain—and the degree to which volumes shift from traditional venues—will determine whether Robinhood Chain becomes a niche experiment or a structural shift in trading infrastructure. 

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