Robinhood Launches Ethereum Layer-2 Testnet for Tokenized Stocks

TLDR

• Robinhood launched a public testnet for Robinhood Chain, an Ethereum layer-2 network built on Arbitrum technology
• The chain will support 24/7 trading of tokenized stocks, ETFs, and other real-world assets with self-custody options
• Mainnet launch is planned for later in 2026 after six months of private testing
• The platform aims to connect tokenized equities with DeFi applications on the Ethereum ecosystem
• Robinhood has already tokenized nearly 2,000 U.S. stocks and ETFs on Arbitrum, though total value lags behind competitors

Robinhood opened its Robinhood Chain testnet to developers on Wednesday. The new Ethereum layer-2 network uses Arbitrum technology to support tokenized financial assets.

The testnet provides developers with network access points and documentation at docs.chain.robinhood.com. It works with standard Ethereum development tools and includes early integrations from infrastructure partners.

Robinhood designed the chain for financial use cases. These include round-the-clock trading, asset bridging between chains, and self-custody through Robinhood Wallet.

The company plans features like decentralized lending markets and perpetual futures exchanges. Stock-style tokens will be available on the testnet before the mainnet launch.

Johann Kerbrat serves as senior vice president and general manager of crypto at Robinhood. He said the testnet creates groundwork for an ecosystem focused on tokenized real-world assets.

The chain will let builders access DeFi liquidity within the Ethereum ecosystem. Kerbrat spoke about the project at CoinDesk’s Consensus Hong Kong conference.

Building Financial Infrastructure

Robinhood has moved beyond basic crypto trading services. The company now operates its own blockchain infrastructure for tokenized assets.

The firm tokenized nearly 2,000 U.S. stocks and ETFs on Arbitrum last year. Data from Entropy Advisors on Dune Analytics shows these tokens have about $15 million in total value.

This value trails behind leading tokenized equity issuers xStocks and Ondo Global Markets. European users can already trade these token versions of stocks with dividend payments and extended market hours.

Kerbrat explained that Robinhood wanted Ethereum’s security and liquidity. The company also needed a customizable chain optimized for traditional assets.

The platform follows a trend where exchanges control both user interfaces and blockchain infrastructure. Coinbase runs its Base layer-2 and announced tokenized equities in December 2025.

Competition and Compliance

Kraken operates a similar strategy with its Optimism-based Ink network. These exchanges are building end-to-end systems for tokenized trading.

Robinhood CEO Vlad Tenev said in January that tokenized stocks could prevent trading freezes. Blockchain technology enables real-time settlement that traditional systems lack.

The company has faced criticism over system outages during market stress. Robinhood also received scrutiny for its payment for order flow model in equities.

Kerbrat said layer-2 networks now serve purposes beyond scaling Ethereum. Vitalik Buterin, Ethereum’s co-founder, supported this view about specialized chains.

Robinhood Chain will focus on tokenized equities and regulated financial products. Compliance requirements vary by jurisdiction and can be embedded into the chain.

The company first announced blockchain plans in June 2025. Development happened privately for six months before the public testnet launch.

The mainnet is scheduled to launch later in 2026. Developers can now build applications using test assets and stock tokens before the official release.

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