Robinhood Launches Developer Testnet for Blockchain

Robinhood announced Tuesday evening that a developer-focused version of its proprietary blockchain, called Robinhood Chain, has gone live. The update was revealed during the Consensus conference in Hong Kong and signals an acceleration of the company’s broader strategy to deepen its presence in crypto-based financial services, including the introduction of tokenized versions of widely traded stocks.

The blockchain, which Robinhood initially previewed in June of last year, is currently operating in a testnet phase. In this stage, the network is publicly accessible but limited to selected partners and participants who are authorized to evaluate the infrastructure and experiment with new features. The company indicated that a full mainnet launch is planned in the coming months, at which point the blockchain will begin processing live customer transactions.

Johann Kerbrat, Senior Vice President of Crypto at Robinhood, explained that several major crypto infrastructure providers, including Alchemy, LayerZero, and Chainlink, are already involved in the ecosystem. He stated that once the mainnet becomes operational, customers will be able to interact directly with the blockchain.

Kerbrat also noted that Robinhood Chain will support transactions conducted through both the company’s self-custody crypto wallet and its primary trading application. He suggested that from a user perspective, the integration will feel seamless, with many customers unlikely to notice that blockchain technology is powering certain features behind the scenes.

Built on Arbitrum’s Layer 2 Technology

Robinhood Chain is constructed on Arbitrum, a Layer 2 scaling solution built on top of the Ethereum blockchain. Layer 2 networks are designed to process transactions more efficiently by batching them before submitting final data to Ethereum’s base layer. This structure aims to reduce transaction costs and improve speed without sacrificing security.

Arbitrum is considered one of the leading Layer 2 platforms within the Ethereum ecosystem. Its main competitor, Optimism, is also widely adopted and forms the technological foundation for Coinbase’s Base blockchain. By selecting Arbitrum as its infrastructure layer, Robinhood is aligning with one of the most established scaling solutions in the market.

Tokenization Strategy Gains Momentum

The rollout of Robinhood Chain aligns with the company’s broader emphasis on tokenization. Chief Executive Officer Vlad Tenev previously characterized tokenization as an unstoppable force reshaping financial markets. The concept involves converting traditional financial assets, such as stocks, into digital tokens that can be traded on blockchain networks in a manner similar to cryptocurrencies like Ethereum.

By developing its own blockchain infrastructure, Robinhood appears to be positioning itself to facilitate on-chain trading of tokenized assets more efficiently. This approach could allow the company to offer innovative financial products while maintaining greater control over the underlying technology stack.

The blockchain announcement coincided with Robinhood’s fourth-quarter earnings report for 2025. The company reported quarterly profits of $605 million, equivalent to 66 cents per share, surpassing analyst expectations of 63 cents per share. However, revenue figures fell short of forecasts, leading to a decline in the company’s share price during after-hours trading.

The introduction of Robinhood Chain reflects the firm’s continued effort to expand beyond traditional brokerage services and establish itself as a significant player in blockchain-based finance. As the testnet progresses toward a full mainnet deployment, market observers will likely monitor how effectively the platform integrates tokenized assets into its broader trading ecosystem.

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