Retail trading platform prioritizes Ethereum security, scalability, and liquidity
Robinhood is accelerating its push into blockchain infrastructure by developing its own Ethereum-based layer-2 network, marking a strategic shift toward deeper integration with decentralized technology. Rather than launching a standalone blockchain, the company chose to build on Ethereum’s scaling ecosystem, aiming to combine innovation with proven security.
The company’s crypto division evaluated launching a layer-1 blockchain but ultimately opted for a layer-2 built on Arbitrum, one of Ethereum’s most active rollup networks. The decision centered on gaining Ethereum’s security, decentralization, and liquidity while avoiding the technical burden of maintaining a base blockchain.
By leveraging Ethereum, Robinhood can focus on product development instead of core protocol design. This approach allows faster rollout of features like tokenized stocks and other onchain assets without compromising network integrity.
Tokenized Stocks and Seamless Expansion
Robinhood’s tokenized stocks program, launched mid-2025, has scaled rapidly. The offering grew from about 200 tokenized stocks to more than 2,000, driven by strong customer demand. These assets currently operate on Arbitrum One, enabling a smooth future transition to Robinhood’s own layer-2 without liquidity disruption.
Beyond tokenized equities, Robinhood has expanded into crypto staking, first in Europe and later in the U.S., following updated regulatory guidance. Looking ahead, the company sees real-world asset tokenization—including private equity, real estate, and art as a major driver of future yield and onchain financial products.
Robinhood’s strategy highlights how traditional financial platforms are increasingly turning to Ethereum-based infrastructure to bridge traditional markets and blockchain technology.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.