Robinhood’s Ethereum Layer-2 Network Enters Public Testnet Phase
Robinhood is launching a public testnet for its Ethereum layer-2 network, Robinhood Chain, allowing developers to experiment with decentralized finance applications in a low-risk environment. The company aims to go beyond simply scaling Ethereum, using the technology to rebuild internal systems and expand its service offerings within the crypto ecosystem. The initial focus includes developers of products like perpetual futures and lending platforms, as well as institutions interested in leveraging Robinhood’s network. Robinhood previously introduced synthetic stock tokens in Europe, providing exposure to U.S. and private company stocks, with plans to expand globally. However, access to such tokenized assets in the U.S. remains limited due to regulatory uncertainty. The testnet phase will inform Robinhood's development of round-the-clock trading infrastructure, using crypto as its foundation. Unlike Coinbase and Kraken, which use Optimism’s technology for their networks, Robinhood’s network is modeled on Arbitrum, an Ethereum scaling solution from Offchain Labs, chosen for its developer-friendly capabilities.
