Robinhood Chain Testnet Launches for Tokenized Asset Development

Robinhood’s entry into the public testnet phase for Robinhood Chain represents a deliberate pivot in how layer-2 networks are utilized. Traditionally, these networks, like those built on Optimism (OP) or Arbitrum (ARB), have been viewed primarily as a solution to improve Ethereum’s (ETH) transaction throughput and cost. However, Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, explicitly stated the company’s different vision. “We don’t want to make it another [layer-2 network] that is just about scaling,” Kerbrat told Decrypt. “We’re actually using this underlying technology to actually rebuild some of our systems.”

This approach positions Robinhood Chain as an operational backbone rather than just a performance enhancer. Kerbrat elaborated that the network is intended to facilitate round-the-clock trading, with crypto serving as the foundational infrastructure. “We’re using [Robinhood Chain] for stock token trading, which is really the way to mimic what we are doing in the U.S.,” he added, signaling that the brokerage’s ambitions extend far beyond its current crypto trading offerings. The testnet provides a low-stakes environment for developers to assess this technical architecture as it integrates with Robinhood’s core retail brokerage business.

At the heart of Robinhood’s strategy is the expansion of tokenized assets, with a particular focus on stock tokens. These synthetic instruments, which provide investors with exposure to U.S. stocks and private companies, were first rolled out to European customers eight months ago. Kerbrat stated Robinhood’s goal is to expand this service “to as many jurisdictions as possible,” a move that would significantly broaden access to tokenized traditional finance.

However, this expansion faces notable headwinds, particularly in the United States. The Securities and Exchange Commission (SEC) is still crafting guidance around digital representations of real-world assets, creating a regulatory gray area that limits investor access. Kerbrat acknowledged this cautious landscape, stating, “We are going to be pretty careful about the rollouts.” The competitive pressure is also intensifying. Crypto-native firms like Coinbase are racing to bring similar tokenized products to market, while other major exchanges like Kraken have also developed their own layer-2 networks.

Robinhood is differentiating its technical approach from these competitors. While Coinbase and Kraken have built their networks using the tech stack from OP Labs, the team behind Optimism, Robinhood has chosen to model Robinhood Chain on Arbitrum, a scaling network created by Offchain Labs. Steven Goldfeder, co-founder and CEO of Offchain Labs, endorsed this choice, stating, “With Arbitrum’s developer-friendly technology, Robinhood Chain is well-positioned to help the industry deliver the next chapter of tokenization.”

The public testnet is strategically aimed at two key audiences: developers and financial institutions. According to the press release, the phase is designed for developers familiar with building complex DeFi products like perpetual futures exchanges and lending platforms. By providing them with a sandbox environment, Robinhood hopes to foster the creation of applications that leverage its network’s unique capabilities for tokenized assets.

Perhaps more significantly, the testnet also targets institutions that may eventually use Robinhood’s infrastructure to offer their own financial products. This move suggests Robinhood Chain could evolve into a B2B platform, allowing other firms to leverage its technology for tokenization. Kerbrat described this testnet phase as a “critical step” following the initial stock token rollout, one that will inform the company’s broader vision. By engaging both developer communities and potential institutional partners early, Robinhood is laying the groundwork for an ecosystem that extends well beyond its own consumer app, carving out a distinct corner in the competitive crypto landscape.