Robinhood Chain testnet goes live as Ethereum layer-2 push targets tokenized stocks

Developers can now experiment with a new infrastructure for tokenized real-world assets as Robinhood launches its robinhood chain public testnet on Ethereum.

Robinhood opens financial-grade Ethereum layer-2 testnet

Robinhood has activated the public testnet for Robinhood Chain, an Ethereum layer-2 network built on Arbitrum technology and designed specifically for tokenized financial assets. The test environment, opened to developers on Wednesday, aims to support 24/7 trading of tokenized stocks, ETFs, and other real-world assets with self-custody options.

According to the company, the network positions itself as a financial-grade Ethereum Layer 2, optimized for both tokenized traditional instruments and native digital assets. Moreover, it leverages Arbitrum infrastructure to deliver lower fees and faster confirmation times while remaining compatible with the broader Ethereum ecosystem.

The public testnet provides access points and documentation through docs.chain.robinhood.com. It is compatible with standard Ethereum development tools and already features early integrations from infrastructure partners, lowering the barrier for developers looking to deploy decentralized applications focused on tokenized finance.

Architecture, tools, and early use cases

Robinhood built the chain for financial applications such as round-the-clock trading, asset bridging between blockchains, and self-custody via Robinhood Wallet. However, the company also highlights that the network will serve as a base layer for more complex on-chain markets.

Planned features include decentralized lending markets and perpetual futures exchanges tailored to tokenized assets. That said, stock-style tokens will already be available on the testnet before the mainnet deployment, allowing teams to test trading logic, liquidity models, and compliance controls with synthetic instruments.

A senior Robinhood crypto executive described the initiative as laying the groundwork for an ecosystem focused on tokenized real-world assets. The chain will enable builders to tap into DeFi liquidity within the Ethereum ecosystem, connecting tokenized equities with established protocols. The project was discussed in detail at CoinDesk’s Consensus Hong Kong conference.

From brokerage app to blockchain operator

Robinhood has expanded beyond offering basic crypto trading and now operates its own blockchain infrastructure for tokenized assets. In 2025, the firm tokenized nearly 2,000 U.S. stocks and ETFs on Arbitrum, signaling a deeper strategic shift into on-chain capital markets.

On-chain data from Entropy Advisors via Dune Analytics shows these tokenized instruments hold approximately $15 million in total value. However, this figure still trails the leading tokenized equity issuers xStocks and Ondo Global Markets, which command larger market shares in the tokenized equities market.

European users can already trade these tokenized versions of U.S. stocks, gaining access to dividend distributions and extended market hours. Moreover, Robinhood says its choice of Ethereum reflects a desire for the network’s security and liquidity, paired with a customizable chain optimized for traditional financial products.

Strategic rationale and industry trend

The company views the new network as part of a broader trend in which exchanges control both user interfaces and blockchain infrastructure. Coinbase, for example, operates its own Base layer-2 and announced plans for tokenized equities in December 2025, highlighting growing competition in tokenized stock trading infrastructure.

Similarly, Kraken pursues a comparable strategy through its Optimism-based Ink network. These platforms are building end-to-end systems that span brokerage-style front ends to settlement layers optimized for tokenized instruments, positioning themselves to capture more of the value chain.

That said, Robinhood’s leadership argues its approach will help address pain points seen during past market stress. The CEO has said tokenized stocks on-chain could reduce the likelihood of trading freezes because blockchain rails enable near real-time settlement, unlike legacy clearing and settlement systems.

Compliance, specialization, and layer-2 evolution

Robinhood executives say that layer-2 networks now provide more than scaling for Ethereum; they also serve as specialized environments for regulated financial products. Ethereum’s co-founder has publicly supported the idea that customized chains can be tailored for specific use cases rather than functioning as generic infrastructure.

Robinhood Chain will prioritize tokenized equities and regulated financial instruments. Compliance requirements, which vary across jurisdictions, can be embedded directly at the protocol or application layer. Moreover, this approach could make it easier for institutions and fintechs to build applications that respect local securities rules while still benefiting from DeFi integrations.

The company initially announced its blockchain strategy in June 2025. Development then proceeded privately for six months before the public testnet debut, reflecting a phased rollout. The mainnet launch is planned for later in 2026, following further testing and security reviews.

Outlook for Robinhood’s tokenized asset ecosystem

With the robinhood chain public testnet now live, developers can start building applications using test assets and stock-style tokens ahead of the full mainnet release. However, the network’s long-term success will depend on liquidity, institutional participation, and how effectively compliance features are implemented across jurisdictions.

If the platform attracts a critical mass of users and protocols, it could become a key bridge between traditional securities markets and DeFi infrastructure. In that scenario, tokenized stocks, ETFs, and other real-world assets may trade seamlessly alongside native crypto instruments on the same Ethereum-based settlement layer.

In summary, Robinhood’s move from brokerage app to blockchain operator signals how major fintech players are racing to define the next phase of on-chain capital markets, with specialized layer-2 networks at the center of that shift.