Robinhood Says Ethereum Gives Its New Layer 2 Real Security And Decentralization

TLDR

• Robinhood chose an Ethereum Layer 2 instead of launching a new Layer 1 chain.
• Johann Kerbrat said Ethereum provides security and decentralization that new L1s often lack.
• Robinhood is building its Layer 2 with Arbitrum technology for tokenized assets.
• Vitalik Buterin said Layer 2 networks should offer clear and honest security tradeoffs.

Robinhood says Ethereum gives its new Layer 2 real security and decentralization. The company says that was a key reason for not launching a new Layer 1 chain. Its leadership also said Ethereum offers deep liquidity and a stronger base for tokenized finance.

The move comes as Ethereum updates its scaling strategy. Vitalik Buterin recently said Layer 2 networks still matter, but their role is changing. The focus is shifting from simple scaling to chains built for specific uses.

Robinhood points to Ethereum security and decentralization

Robinhood announced in June 2025 that it would build an Ethereum Layer 2 with the Arbitrum stack. The company said it wanted security, liquidity, and room for product control. It had considered other options, including a standalone blockchain.

Johann Kerbrat, Robinhood’s head of crypto, explained the decision in direct terms. He said, “Creating the security of a real, properly decentralized chain is extremely difficult.” He added that Ethereum provides that base, while many new Layer 1 chains are “not really decentralized or secure.”

Ethereum scaling plan keeps Layer 2s relevant

Vitalik Buterin said the original view of Layer 2 networks needed to change. He wrote that Ethereum was not moving away from Layer 2s. Instead, Ethereum would scale the base layer faster, while Layer 2s would focus on customization.

That approach follows new progress on Ethereum itself. The gas limit doubled in 2025 from 30 million to 60 million. The roadmap also includes faster block times, more data capacity, and zkEVM-based upgrades in later years. Those changes are meant to reduce Layer 2 costs and improve settlement speed.

Institutions want liquidity and operational control

Robinhood says liquidity was another major reason for choosing Ethereum. The company wants to bring more financial assets on-chain, including equities and other tokenized products. Kerbrat said the goal requires access to a larger network, not a closed system.

Robinhood CEO Vlad Tenev also said rollup technology now offers strong performance. He said long-term control matters more for product development, and he added that firms are “not really missing much.” As an Ethereum Layer 2, Robinhood can keep sequencer revenue, manage fees, and set compliance features, while Ethereum handles settlement and security.

Vitalik Buterin later said Layer 2 networks should “do something that brings something actually new to the table.” He also said, “Vibes should match substance.” That statement reflects a broader push for clearer labels across the Ethereum ecosystem. Networks closer to Ethereum’s security model are being separated from systems with looser ties.

Robinhood’s plan fits that new frame. The company is presenting its Ethereum Layer 2 as a chain built for regulated products, but anchored to Ethereum for real security and decentralization.

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