With the new steps it has taken in the cryptocurrency infrastructure, Robinhood is investing in Blockchain-based financial architecture, going beyond being just a trading platform. The company has undergone a strategic transformation over the past year with the launch of tokenized stocks, staking products, and a new Layer-2 network built on the Ethereum scaling ecosystem. The point that really drew attention in the industry was that Robinhood preferred an Ethereum-based solution instead of establishing an independent Layer-1 Blockchain. This approach offers a framework that both limits technical risks and provides rapid access to liquidity.
Layer-2 Strategy Based on Ethereum Security
Johann Kerbrat, Robinhood’s manager in charge of cryptocurrency operations, emphasized that the company made a clear evaluation between Layer-1 and Layer-2 and that they preferred the security and decentralization features offered by Ethereum. He stated that taking part in the Ethereum Virtual Machine ecosystem brings not only technical security but also a deep liquidity pool. This allows Robinhood to focus on product development rather than dealing with core blockchain security.
The new network is being developed on the Arbitrum infrastructure, one of Ethereum’s most active rollup solutions. It has not been announced when the system, which currently operates on a private test network, will be made available to the public. However, Robinhood’s tokenized shares are already traded on Arbitrum One, making the transition to the private Layer-2 network available in the future technically seamless. The company stated that assets and liquidity can be moved directly to the new Blockchain.
From Tokenized Shares to Real World Assets
Robinhood first launched its tokenized equity program with limited scope in the summer. The product, which was initially offered with approximately 200 stocks, quickly increased to over 2,000 as user demand increased rapidly. The company management states that investors do not want to be satisfied with only popular stocks, but expect access to the entire portfolio. This demand stands out as the main element that expands the scale of the tokenization vision.
Expansion plans will not be limited to publicly traded companies. Robinhood envisions a future where different asset classes, such as private equity, real estate, and artwork, can also be represented on the Blockchain. In the same period, staking products were also added to the portfolio. The staking service, which started in Europe, was rolled out across the US following increased regulatory clarity. Only a few states were excluded. The company is of the opinion that increasing asset diversity within Blockchain will pave the way for new return and borrowing models.
