Robinhood Unveils Layer-2 Ethereum Testnet Designed for Asset Tokenization
The trading platform has introduced its Arbitrum-powered Ethereum layer-2 testnet, expanding its commitment to tokenized securities and decentralized finance infrastructure in competition with rival exchanges.
The popular trading platform Robinhood has introduced a publicly accessible testnet for Robinhood Chain, representing its newly developed Ethereum layer-2 network that utilizes Arbitrum technology with the goal of facilitating the onchain presence of tokenized digital and real-world assets.
Based on information provided to Cointelegraph in an official release, the testnet has gone live for developer access and provides network connection points, technical documentation available at docs.chain.robinhood.com, support for conventional Ethereum development toolsets, and preliminary integrations with infrastructure partner organizations.
The company states that the blockchain infrastructure has been engineered for "financial-grade" applications, encompassing round-the-clock trading capabilities, frictionless bridging functionality, self-custody solutions, and decentralized applications including platforms for tokenized assets, lending protocols, and exchanges for perpetual futures contracts.
The platform's mainnet deployment is scheduled for release later in the current year, with testnet-exclusive assets like stock-based tokens and enhanced integration capabilities with Robinhood Wallet listed among the functionalities anticipated to arrive in upcoming months.
In the official release, Johann Kerbrat, senior vice president and GM of Crypto and International at Robinhood, stated that the Robinhood Chain testnet established the foundation for "an ecosystem that will define the future of tokenized real-world assets," while allowing developers to access decentralized finance (DeFi) liquidity throughout the Ethereum ecosystem.
Robinhood's tokenization push
This testnet introduction represents a significant strategic evolution for Robinhood, transitioning from merely providing cryptocurrency trading services to managing its own blockchain infrastructure, a move that follows its initiative to tokenize close to 500 United States stocks and exchange-traded funds (ETFs) on the Arbitrum network as a component of its comprehensive real-world asset tokenization strategy.
The development of Robinhood Chain additionally reflects an emerging industry-wide pattern where cryptocurrency exchanges seek to maintain control over both the customer-facing platform and the foundational blockchain infrastructure.
Coinbase provides an illustration of this approach, operating as a regulated exchange platform while simultaneously developing its Base L2 network, and revealing the commencement of its tokenized equities rollout in Dec. 2025.
Kraken has adopted a comparable comprehensive strategy, managing a worldwide cryptocurrency exchange operation while concurrently building Ink, its proprietary Optimism-based L2 network, in conjunction with its xStocks tokenized equity offerings.
Mixed track record
The trading platform has encountered regulatory scrutiny and public backlash concerning platform outages that occurred during volatile market conditions and its dependence on payment for order flow in stock trading, a practice where market-making companies compensate brokers to direct customer orders to their systems in return for rebate payments.
In January, Robinhood CEO Vlad Tenev stated that tokenized stocks could help prevent trading freezes, thanks to the real-time settlement properties of blockchain technology.