Robinhood’s Ethereum Layer-2 Enters Public Testnet: Why It Matters

Robinhood has officially launched a public testnet for its new Ethereum Layer-2 network, marking a major step in bringing millions of users to the chain. Built on Arbitrum (ARB crypto) technology, this “Robinhood Chain” aims to lower fees and introduce traditional stock traders to the world of decentralized finance (DeFi).

The Robinhood Chain public testnet is live

Developers can now build on top of the Ethereum Layer 2 financial standard it’s built on @arbitrum— is designed to support real-world and digital asset tokens.

Start building with the main foundation of Robinhood Chain:

— Robinhood (@RobinhoodApp) February 11, 2026

Announcing at X, Robinhood highlighted a clear focus on creating a new blockchain to tokenize real-world assets, an increasingly competitive space over the past year as RWA has shot into the limelight as some call it the next direct growth.

RobinHood Enters the Layer-2 Race: What Is Layer-2 and Why Should You Care?

If you are new to crypto, think of Ethereum as a busy highway that is often congested, making tolls (gas fees) expensive (historically!). A Layer-2 (L2) network is like adding a direct route over that highway; it’s faster and cheaper, but still uses highway protection.

By building its L2, Robinhood expands its offering beyond crypto and stock trading; it creates a level playing field where developers can build applications that allow users to trade token assets at a low price. This is in line with Vitalik Buterin’s L2 roadmap, which envisions these networks as the primary way everyday people will interact with blockchain in the future.

Arbitrum’s New Secret Weapon? How Robinhood Chain works

I The Robinhood Chain it was built using technology from Offchain Labs (Arbitrum), one of the leading names in Ethereum valuation. The goal here is straightforward: to bridge the gap between traditional currencies (TradFi) and crypto.

Developers can now start testing apps in a “low-cost” environment without spending real money. The main focus? Token goods.

• Stock Tokens: Robinhood is exploring ways to represent stocks (such as certain US stocks) as tokens on the blockchain.
• Low cost: Leveraging Arbitrum technology ensures that transactions cost pennies, not dollars.
• Partners: They do not build alone; integrations include heavy hitters like Chainlink and LayerZero.

This move comes at an interesting time. While projects like MegaETH seek raw speed, Robinhood optimizes user experience and compatibility. According to Johann Kerbrat, GM of Robinhood Crypto, this allows them to “rebuild some of our systems” rather than just scale.

Why This Matters Outside of Retail Trading

This is what we often call “discovery.” Robinhood has the large user base needed to tap into the millions who find traditional DeFi too intimidating or technical. However, it also highlights the tendency of companies to build their own supply chains—like how ENS abandoned its L2 plans to focus on strategy, Robinhood dives headfirst into infrastructure to own customer relationships.

For investors, this could ultimately restore value to Ethereum, especially as Ethereum’s price fluctuates and the market looks for a real-world resource to bolster it. But be aware of the risks: this is almost a “walled garden” version of crypto, highly regulated and not as free as experienced traders of the DeFi ecosystem are used to.

The launch of the mainnet is planned for later in 2026. We’ll be watching to see if they can really combine the ease of their app with the power of the blockchain without compromising the spirit of crypto.

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