Robinhood Launches Public Testnet for Ethereum Layer 2 ‘Robinhood Chain’

Robinhood has marked a major milestone in its blockchain ambitions as it launched the public testnet for its Ethereum Layer 2 network, Robinhood Chain. This strategic move signals the financial giant’s push to build its own blockchain infrastructure. The development marks the first phase of bringing its vision of tokenized assets and 24/7 trading into reality.

Robinhood Expands Blockchain Push with Ethereum Layer-2 Testnet

According to a press release earlier today, Robinhood has launched the public testnet for Robinhood Chain, the highly anticipated Ethereum Layer 2 network. Soon after the testnet launch, the platform will start testing and building apps on the network.

Primarily, the initiative is intended at expanding Robinhood’s on-chain financial services, with the initial focus set on tokenized real-world and digital assets. With the testnet launch of the Ethereum Layer 2 network, developers can explore and evaluate its features ahead of the mainnet launch. Johann Kerbrat, SVP and GM of Crypto and International at Robinhood, stated,

Despite this major development, the Robinhood stock price has declined by a notable 8.8%, currently at $78.09. The HOOD stock has been witnessing a significant downturn over the past few days, especially since February. CoinGape recently reported that the HOOD stock price crashed by nearly 9% in early February.

Why This Testnet Launch?

As noted by the company, the testnet launch is just an initial stage. It is meant as a basic infrastructure for developers to test and verify applications on Robinhood Chain. Kerbrat added,

It is worth noting that the development comes amid Robinhood’s Q4 revenue report release. As CoinGape reported earlier today, the firm reported $1.28 billion in revenue, less than the expected $1.35 billion. Crypto transaction revenue also declined to $221 million, down from $268 million in the previous quarter.

The platform further noted that several infrastructure providers like Alchemy, Allium, Chainlink, LayerZero, and TRM are planning to integrate Robinhood Chain. More partners will also join the chain in the near future.