Robinhood Launches Arbitrum-Based L2 Testnet for Tokenized Asset Trading

Robinhood has taken a major step deeper into blockchain infrastructure with the public launch of the Robinhood Chain testnet, an Ethereum layer-2 blockchain built on Arbitrum technology designed to support tokenized real-world and digital assets and pave the way for next-generation on-chain finance. 

Unveiled at Consensus Hong Kong 2026, the testnet gives developers access to network endpoints, documentation and Ethereum-compatible tools as Robinhood moves toward a full mainnet rollout slated later this year. The company describes the project as a financial-grade Layer-2 network capable of powering traditional financial instruments — including 24/7 trading of tokenized stocks, ETFs and other real-world assets (RWA) — directly onchain. 

What the Testnet Offers

The Robinhood Chain testnet is intended to accelerate development and experimentation on the network ahead of a full launch. Key features currently available include:

• Developer access to a live Arbitrum-based L2 network: Builders can begin testing applications using familiar Ethereum development environments. 

• Support for tokenized real-world assets: Early integrations and testkit assets are expected to include tokenized stocks and financial instruments. 

• Compatibility with Robinhood Wallet and bridging tools: Developers can explore integrations that link assets and user flows between wallets and decentralized environments. 

Robinhood executives say the platform will support self-custody, cross-chain bridging and decentralized finance (DeFi) connectivity, bridging traditional finance (TradFi) with blockchain rails while retaining Ethereum’s security and liquidity. 

Strategic Push Into Tokenized Finance

This initiative represents a significant expansion beyond Robinhood’s existing tokenized asset offerings. In 2025, the company issued tokenized U.S. stocks and ETFs for European customers via Arbitrum, enabling expanded market access and extended trading hours. With Robinhood Chain, the goal is to bring these and future tokenized products onto a dedicated Layer-2 environment, potentially powering round-the-clock asset trading and settlement. 

Johann Kerbrat, Senior Vice President and General Manager of Robinhood Crypto, said the testnet lays the groundwork for an ecosystem that could help “define the future of tokenized real-world assets” by connecting builders to Ethereum’s deep liquidity while meeting compliance needs for regulated financial products. 

Why It Matters

Robinhood Chain’s launch comes at a time when traditional brokerage firms are increasingly exploring blockchain rails to extend trading beyond legacy systems. By operating its own Arbitrum-based network — instead of relying solely on third-party blockchains — Robinhood aims to control both front-end user experience and core settlement infrastructure, a move that could shape how mainstream financial products interact with on-chain ecosystems. 

Analysts see this as part of a broader trend in which financial platforms build bespoke Layer-2 networks tailored to specific asset classes and regulatory constraints, potentially increasing liquidity, speeding settlement and lowering transaction costs for tokenized real-world assets.