Robinhood Enters Layer 2 Race With Public Testnet Launch of Robinhood Chain

Robinhood has launched the public testnet for Robinhood Chain, an Ethereum Layer 2 network built on Arbitrum. The US-based trading platform said the testnet is designed to accelerate the development of tokenized real-world and digital assets.

This move would give developers early access to the core infrastructure ahead of a planned mainnet launch later this year.

Arbitrum-Based Layer 2 Testnet

With the public testnet now live, developers can begin building and verifying applications on Robinhood Chain, using an environment that is compatible with standard Ethereum development tools and leverages Arbitrum technology. Robinhood stated that several infrastructure providers, such as Alchemy, Allium, Chainlink, LayerZero, and TRM, are already integrating with the network.

More partners are expected to be onboarded during the early stages of the testnet. As part of the launch, participants can access network entry points to the testnet, developer documentation hosted on Robinhood’s website, and early infrastructure support from ecosystem partners.

The company stated that the testnet phase is intended to support experimentation, identify potential issues, improve network stability, and lay the groundwork for developers ahead of the upcoming mainnet.

Robinhood Chain is backed by the company’s existing infrastructure and experience. It was developed with a focus on reliability, security, and compliance, the release said. Built on Arbitrum, the network supports bridging and self-custody, along with the scalability and customizability needed for financial-grade decentralized products such as tokenized asset platforms, lending platforms, and perpetual futures exchanges.

Going forward, Robinhood said developers building on the chain will gain access to testnet-only assets, including Stock Tokens for integration testing, as well as direct testing with Robinhood Wallet. The company added that the chain is designed to provide a familiar development environment within the broader Ethereum and Arbitrum ecosystem.

Institutional Expansion Meets Revenue Headwinds

The trading platform has continued to deepen its exposure to cryptocurrencies since rolling out crypto trading for users. Last year, Robinhood officially completed the $200 million acquisition of Bitstamp, which was touted as its formal entry into institutional crypto. However, its revenue trends have weakened in the last few months.

In the fourth quarter of 2025, Robinhood generated $221 million from cryptocurrency transactions, down 38% from a year earlier. The result contrasted with the previous quarter, when crypto revenue jumped to $268 million, amidst broader market turmoil.

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