Robinhood Rolls Out Robinhood Chain Testnet: Accelerating Onchain Trading and Tokenized Assets

Big News from Robinhood: A New Blockchain Enters the Scene

Robinhood, the popular trading app, just took a major step into the blockchain world. They launched the public testnet for their own Ethereum layer-2 network called . This move shows how serious they are about bringing more crypto trading and tokenized real-world assets onchain. The announcement happened at a big crypto event in Hong Kong, and it promises 24/7 trading, self-custody wallets, and easy bridges to other chains.

If you’re into crypto or traditional finance, this could change how you trade stocks, ETFs, and more. Let’s break it down simply and see why matters.

What is and How Does It Work?

is an Ethereum layer-2 blockchain built on Arbitrum technology. Layer-2 means it sits on top of Ethereum to make things faster and cheaper while keeping Ethereum’s strong security.

The main goal? To handle tokenized real-world assets (RWAs). Think digital versions of stocks, exchange-traded funds (ETFs), and other traditional investments. Developers can now build on the public testnet after six months of private testing. A full mainnet launch is planned later this year.

• Key Features:
• 24/7 trading – no more market close times.
• Self-custody in Robinhood’s crypto wallet – you control your keys.
• Bridge to other chains and DeFi apps on Ethereum.
• Optimized for tokenized equities and regulated assets.

This isn’t just about speed. Robinhood wants a chain tailored for finance products with different rules in each country.

Robinhood’s Push into Tokenization: From Stocks to Onchain

Robinhood didn’t start from scratch. Last year, they launched tokenized U.S. stocks and ETFs for users in Europe. These come with dividends and longer trading hours. Data shows nearly 2,000 such assets on Arbitrum, but their total value is about $15 million – behind leaders like xStocks and Ondo.

Now, takes this further. It lets developers create apps for these assets. Users get true ownership and can move them to DeFi for lending or yield farming.

Why does this matter? Tokenization turns slow, limited traditional assets into fast, global ones on blockchain. Imagine trading Apple stock anytime, anywhere, with crypto-like ease.

Ethereum Layer-2s: From Scaling to Specialization

When layer-2s first popped up, they fixed Ethereum’s high fees and slow speeds. But Ethereum’s base layer is getting better with upgrades that cut costs and congestion. So, why build an L2 now?

Johann Kerbrat, Robinhood’s crypto boss, says it’s not just about scaling. “L2s were never only for faster transactions,” he explained. Robinhood wants Ethereum’s security and liquidity, plus custom features for tokenized assets.

The big shift: L2s are becoming specialized chains. Some for payments, others for gaming, and for equities. This matches what Ethereum co-founder Vitalik Buterin has said – some chains need tweaks for compliance and real-world use.

“Chains are going to specialize. You’ll see ones for payments and ours for tokenized equity.” – Johann Kerbrat

For Robinhood, compliance is baked in from the start, no big changes needed.

Developer Tools and What’s Next for the Testnet

The public testnet is live! Developers get:

• Network access points.
• Full docs.
• Standard Ethereum tools.

Before mainnet, expect test assets like stock tokens, wallet integrations, and more onchain finance tools.

Robinhood first teased this in June 2025 as part of their tokenization drive. Now, it’s real and ready for builders.

Why This Boosts Crypto Adoption

bridges TradFi and crypto. Millions of Robinhood users – mostly new to blockchain – get an easy entry. Trade stocks onchain, earn DeFi yields, all in one app.

Benefits for everyone:

It also competes with high-speed L2s by focusing on regulated products. As RWAs boom – projected to hit billions – Robinhood is positioned well.

Challenges and the Bigger Picture

Not everything is smooth. Token volumes are low so far. Compliance varies by country, and regulators watch closely. But Robinhood’s experience with EU tokens helps.

This fits the trend: Banks like BlackRock tokenize funds, and chains like Base grow fast. could pull more retail traders onchain, boosting Ethereum’s ecosystem.

Final Thoughts: The Future of Onchain Finance

Robinhood’s testnet is a game-changer. It turns a simple trading app into a blockchain powerhouse. Watch for mainnet – it could make tokenized assets mainstream.

Stay tuned as developers build and users test. Crypto trading just got more exciting. What do you think – will you try ? Drop your thoughts below!

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