Robinhood Launches Ethereum Layer-2 Testnet on Arbitrum for Tokenized Assets

14 days ago

KEY FACTS: Robinhood has launched the public testnet for Robinhood Chain, a custom Ethereum Layer-2 network built on Arbitrum technology, designed specifically to support tokenized real-world assets (RWAs) such as stocks and ETFs, alongside digital assets, enabling features like 24/7 trading, seamless asset bridging, true self-custody, and decentralized applications including lending markets and perpetual futures exchanges. Announced around February 10, 2026, the testnet is now live and open to developers, providing network access, detailed documentation at docs.chain.robinhood.com, full compatibility with Ethereum tools, and early integrations with partners like Alchemy, Chainlink, LayerZero, Chainalysis, Allium, and TRM. This move builds on Robinhood's earlier efforts to tokenize nearly 500 U.S. stocks and ETFs on Arbitrum, particularly for European users, marking a strategic shift toward operating its own on-chain infrastructure amid similar trends at platforms like Coinbase and Kraken. A mainnet launch is planned for later in 2026, with upcoming testnet enhancements including stock-style tokens and deeper Robinhood Wallet integration.

Source: Robinhood

Robinhood Launches Ethereum Layer-2 Testnet on Arbitrum for Tokenized Assets

Robinhood has officially launched the public testnet for Robinhood Chain, its custom-built Ethereum Layer-2 (L2) network. Powered by Arbitrum technology, the new chain is specifically engineered to support tokenized real-world assets (RWAs), including stocks, exchange-traded funds (ETFs), and other financial instruments, marking a deeper commitment by the popular retail trading platform to blockchain-based infrastructure.

The announcement, shared on February 10, 2026, comes as Robinhood continues to expand its crypto offerings beyond simple trading services. The testnet is now live and accessible to developers, providing essential tools such as network access points, comprehensive documentation available at docs.chain.robinhood, full compatibility with standard Ethereum development environments, and initial integrations with key infrastructure partners, including Alchemy, Chainlink, Chainalysis, LayerZero, and others.

Robinhood describes Robinhood Chain as a "financial-grade" Layer-2 solution optimized for high-stakes use cases that bridge traditional markets with decentralized finance (DeFi). Key features highlighted include round-the-clock (24/7) trading capabilities, seamless asset bridging between networks, true self-custody for users, and support for advanced decentralized applications. These include platforms for tokenized assets, lending markets, perpetual futures exchanges, and more. The chain is leveraging Ethereum's security while benefiting from Arbitrum's scalability and lower costs, to enable efficient, programmable trading of both digital and real-world assets without intermediaries.

Johann Kerbrat, Senior Vice President and General Manager of Crypto and International at Robinhood, speaking on the development, mentioned that the testnet for Robinhood Chain lays the groundwork for an ecosystem that will define the future of tokenized real-world assets. He emphasized that the network will empower builders to access DeFi liquidity pools within the broader Ethereum ecosystem, fostering innovation in on-chain financial services.

This development builds directly on Robinhood's earlier initiatives in tokenization. The company has already tokenized nearly 500 U.S. stocks and ETFs on Arbitrum as part of its real-world asset strategy, initially rolling out stock tokens in Europe to provide users with synthetic exposure to U.S. equities and private companies. Those efforts, which include features like zero commissions (with other fees potentially applying), dividend support, and extended trading hours, represent a shift toward making Robinhood an all-in-one investment platform powered by crypto technology.

Robinhood CEO Vlad Tenev has previously championed tokenization's potential to address longstanding issues in traditional markets. In January statements, he noted that blockchain's real-time settlement properties could eliminate trading freezes and halts seen during periods of extreme volatility, offering a more resilient alternative to legacy systems.

The launch positions Robinhood among a growing cohort of major exchanges investing in proprietary blockchain infrastructure to control both user interfaces and underlying settlement layers. Coinbase operates its Base L2 network and has begun rolling out tokenized equities, while Kraken advances its Optimism-based Ink chain alongside tokenized asset offerings through partnerships like xStocks. These moves reflect a broader industry trend where platforms seek end-to-end ownership of trading flows in an increasingly tokenized economy.

Robinhood Chain's testnet phase allows developers to experiment in a low-risk environment, identifying potential issues and refining stability ahead of the planned mainnet rollout later in 2026. Upcoming enhancements are expected to include testnet-exclusive assets like stock-style tokens and deeper integration with the Robinhood Wallet for seamless self-custody and user experience.

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