Robinhood is going deeper into crypto infrastructure.

 

The company has launched the public testnet for Robinhood Chain, its own Ethereum layer 2 network built on Arbitrum’s rollup technology. Until now, Robinhood has mostly acted as a gateway, letting users trade crypto and, in some regions, tokenized equities. This move changes that. It is now building the underlying blockchain where those assets could live.

 

It is a meaningful shift. Running a brokerage app is one thing. Operating blockchain infrastructure is another.

 

 

What Robinhood Chain Actually Is

Robinhood Chain is a permissionless Ethereum layer 2. It uses Arbitrum’s technology, which means it inherits Ethereum’s security while offering lower transaction costs and higher throughput through rollups.

 

“With Arbitrum’s developer-friendly technology, Robinhood Chain is well-positioned to help the industry deliver the next chapter of tokenization and permissionless financial services,” said Steven Goldfeder, Co-Founder and CEO of Offchain Labs. “Working alongside the Robinhood team, we are excited to help build the next stage of finance.”

 

For developers, it is EVM compatible. Smart contracts built for Ethereum can be deployed here with standard tooling. Wallets, developer libraries, and infrastructure services should feel familiar.

 

On paper, nothing radical. The differentiation is not in the virtual machine. It is in the intended use case.

 

 

The Core Bet: Tokenized Stocks

Robinhood is clearly focused on tokenized real world assets, especially public equities and ETFs.

 

The company has already offered tokenized stock exposure in Europe. Now it is building infrastructure that could support broader issuance and trading of these assets directly onchain.

 

A big part of the pitch is continuous trading. Crypto markets operate 24 7. Traditional stock exchanges do not. If equities are represented as tokens on a blockchain, they can, in theory, trade at any time and settle much faster than traditional systems.

 

That sounds straightforward. In practice, it depends heavily on regulatory clarity. Tokenized securities raise questions around custody, investor protections, and jurisdictional restrictions. Robinhood has acknowledged this and appears to be designing the chain with compliance in mind.

 

 

Compliance Is Not an Afterthought

Unlike many general purpose layer 2 networks, Robinhood Chain is being built with regulated financial products as the primary target.

 

That means infrastructure that can handle minting and burning of tokenized securities in a controlled way. It likely also means features that support jurisdiction based restrictions and other compliance requirements at the protocol or system level.

 

Robinhood has not framed this as a purely decentralized experiment. It is positioning the network as financial infrastructure, with guardrails.

 

That will appeal to some institutions. It may frustrate parts of the crypto community. Both reactions are predictable.

 

 

Infrastructure Partners in Place

Robinhood is not building this alone.

 

Chainlink is involved to provide oracle services, which are essential if you are dealing with tokenized stocks that need accurate real world price feeds. Alchemy is supporting developer infrastructure. Other analytics and compliance firms are integrated from the outset.

 

This is not a bare bones testnet thrown into the wild. It is being launched with a fairly complete infrastructure stack.

 

The company is also rolling out developer documentation and encouraging builders to start experimenting immediately.

 

 

The Exchange Layer 2 Trend

Robinhood joins a growing list of exchanges and fintech firms launching their own Ethereum layer 2 networks.

 

Coinbase operates Base. Kraken is developing its own network. Other trading platforms are exploring similar strategies.

 

The rationale is not complicated. If tokenized assets and onchain trading grow, exchanges would prefer that activity to happen on networks they influence, rather than on third party chains. Controlling infrastructure can mean more flexibility in product design, fee structures, and integration with existing platforms.

 

For Robinhood, which already serves millions of retail users, owning a layer 2 could tighten the loop between its app, its wallet, and onchain markets.

 

 

Testnet Today, Mainnet Later

Right now, Robinhood Chain is in public testnet. Developers can deploy contracts, test integrations, and experiment with wallet flows, including direct testing with Robinhood Wallet. No production assets are live yet.

 

To drive activity, Robinhood is backing developer engagement with hackathons and incentives, including a seven figure prize pool aimed at financial applications built on the network.

 

A mainnet launch is expected later this year, though exact timing has not been pinned down publicly. Technical stability and regulatory comfort will likely dictate the pace.

 

 

The Bottom Line

Robinhood Chain is a signal that tokenized finance is not just a side project for major platforms anymore.

 

If tokenized equities become widely accepted, infrastructure will matter as much as distribution. Robinhood already has distribution through its app. Now it is trying to build the rails underneath.

 

There are open questions. Will regulators in the US allow meaningful onchain trading of tokenized securities? Will liquidity concentrate on exchange backed layer 2s or on more neutral networks? Will users care which chain their tokenized stock sits on?

 

For now, Robinhood has made its position clear. It wants to be more than a broker. It wants to operate the blockchain layer where digital versions of traditional assets trade and settle.

 

The testnet is the first real step in that direction.

Robinhood’s Crypto Revenue Soars, Signaling Surge in Retail Crypto Engagement

Robinhood Markets reported that its cryptocurrency-trading revenue surged by 339% in Q3 2025 to $268 million. This performance underscores the increasing role of crypto in Robinhood’s business model and reflects broader retail investor enthusiasm for digital assets. The rise comes against a backdrop of product innovation, global expansion and favorable sector sentiment.

 

Strong Performance Across the Platform

While crypto trading was a standout, Robinhood’s overall performance paints a positive picture of a company gaining traction. Earlier in the year the company reported Q2 revenue of $989 million, up 45% year-on-year and with crypto revenue alone up 98% to $160 million. The momentum built into stronger Q3 performance where crypto contributed a larger share of transaction-based revenues. The company’s expanded crypto product offerings, including new tokens, staking and acquisition of Bitstamp, helped fuel activity.

 

Why Crypto Revenue Grew So Fast

Several factors helped drive Robinhood’s crypto-business acceleration:

• Retail engagement in crypto trading is high. With more tokens listed, easier access and zero-commission trading, Robinhood has captured more users’ attention.
• Global expansion. The acquisition of Bitstamp gave Robinhood more licensing in Europe and access to more markets, increasing liquidity and cross-border trading.
• New product launches. Added services such as crypto staking in the U.S. and EU, tokenized stocks, and enhanced platform features boosted user activity.
• Macro environment. Periods of heightened crypto volatility and interest often correspond with higher trading volumes and revenue for platforms like Robinhood.

 

Implications for Robinhood and Crypto Platforms

For Robinhood, the spike in crypto revenue suggests the firm is successfully evolving beyond a retail stock-trading app into a broader digital-asset-centric platform. Crypto trading is no longer a niche segment, it is now a meaningful driver of revenue and growth.

For the broader crypto industry, Robinhood’s results highlight several important trends:

• Retail platforms with strong user bases and simple onboarding for crypto are gaining a larger share of trading volume and attention.
• Crypto is becoming more integrated into mainstream fintech business models, not just peripheral to them.
• Expanding regulatory clarity and global licensing (as seen via Bitstamp acquisition) are helping platforms scale crypto services globally.
• The overlap between equities, options and crypto trading is becoming more pronounced, as platforms leverage overlapping customer bases.

 

What to Watch Moving Forward

• Sustainability of the growth. Strong quarter-to-quarter gains are impressive but maintaining this requires continuous product innovation, user acquisition and regulatory compliance.
• Crypto revenue mix and token exposure. As crypto revenue grows, the breakdown by asset class, trading type and geography will matter for understanding risk and opportunity.
• Platform expansion and licensing. Global regulatory regimes continue to evolve, so Robinhood’s ability to scale globally while maintaining compliance will be key.
• Competitive landscape. Other platforms are competing aggressively in crypto trading, tokenization and wallet services. Robinhood’s product velocity and customer experience will determine how it holds competitive edge.

 

Robinhood’s Market Strength and Expanding Footprint

Robinhood’s impressive crypto performance came alongside strong overall financial results. Although shares dipped about 2% in after-hours trading, the stock remains up roughly 260% year-to-date, reflecting the market’s confidence in the company’s long-term trajectory.

Chief Financial Officer Jason Warnick said the quarter highlighted “another period of profitable growth” and emphasized the company’s diversification. He noted that Robinhood added two new business lines, Prediction Markets and Bitstamp, each already generating around $100 million in annualized revenue.

“Q4 is off to a strong start,” Warnick added, pointing to record trading volumes across equities, options, prediction markets, and futures, along with new highs for margin balances.

The company’s market capitalization has now reached $126 billion, placing it ahead of major competitors like Coinbase, which also reported strong earnings recently.

These results follow a string of moves aimed at deepening Robinhood’s role in the global crypto ecosystem. The acquisition of Bitstamp, one of the world’s oldest crypto exchanges, gave Robinhood an established regulatory presence and a user base spanning more than 50 countries. This acquisition not only expanded access to international markets but also strengthened its compliance infrastructure — a crucial advantage as global regulators define the next phase of crypto policy.

 

Final Thoughts

Robinhood’s record-setting quarter represents more than just strong numbers, it highlights a pivotal transformation in how traditional fintech and digital assets are converging.

The company’s 339% surge in crypto trading revenue reflects growing confidence among retail investors, while its acquisitions and new business lines show a clear pivot toward becoming a comprehensive global trading platform. With Bitstamp under its umbrella and new markets like prediction trading contributing nine-figure revenues, Robinhood is building an ecosystem that spans equities, options, futures, and crypto — all within a single, regulated framework.

Despite the minor dip in after-hours trading, investor sentiment remains overwhelmingly positive. Robinhood’s valuation of $126 billion underscores that the market views the company not as a speculative fintech, but as a major financial institution reshaping digital trading.

As the boundaries between finance and crypto continue to blur, Robinhood’s expansion signals a broader truth: the next generation of global markets will not separate traditional and digital assets. Instead, they will coexist on platforms that offer both speed and security — and Robinhood appears determined to lead that charge.

 

 

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Robinhood has taken another big step into the world of blockchain by expanding its tokenization efforts. The platform has now tokenized nearly 500 U.S. stocks and ETFs, with a total value of more than $8.5 million. Minted tokens have already reached over $19 million in volume, with around $11.5 million worth burned.

The program initially launched in mid-2025 for European customers, using the Arbitrum layer-2 blockchain. Now it is scaling rapidly as Robinhood pushes to become a leader in real-world asset tokenization.

Key features

• Stock tokens mirror the price movements of the underlying securities but do not provide direct ownership rights such as voting or shareholder privileges.

• The tokens are issued on Arbitrum, with Robinhood also planning to launch its own Layer-2 blockchain in the future.

• European users benefit from low-fee trading, extended hours with 24/5 availability, and in some cases dividend payouts in tokenized form.

Why it matters

1. Investor access – Tokenization allows global users to gain exposure to U.S. equities and ETFs that might otherwise be hard to reach.

2. Merging crypto and traditional finance – Bringing stocks onto blockchain rails enables faster settlement, fractional ownership, and broader reach.

3. Infrastructure shift – By using Arbitrum and building its own blockchain, Robinhood is laying the groundwork for large-scale tokenized finance.

4. Regulation and risk – The tokens do not carry full shareholder rights, raising questions about regulation, investor protections, and long-term adoption.

What to watch

• The rollout of Robinhood’s own Layer-2 blockchain and its impact on 24/7 trading.

• Expansion beyond the initial 493 tokenized assets.

• Regulatory responses in the U.S. and Europe as tokenization of equities gains attention.

• How liquidity, pricing, and adoption of these tokenized assets evolve compared to traditional stocks.

Bottom line

 

Robinhood’s move to tokenize hundreds of U.S. stocks and ETFs represents a bold push into the fusion of traditional finance and blockchain. While it opens exciting opportunities for accessibility and innovation, the approach is still new and comes with unanswered questions. This could mark the start of a new era in investing, where traditional assets trade seamlessly on blockchain rails.