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Robinhood launches public testnet for Robinhood Chain on Arbitrum ( Ethereum Layer 2 )

Robinhood, the US‑based trading platform, has started a public test version of something called Robinhood Chain. This is an Ethereum Layer 2 network built on Arbitrum. To understand this, we can break it down simply. Ethereum is a big, online system where people can run programs and trade digital tokens. Layer 2 means a smaller, faster layer that sits on top of Ethereum to make things quicker and cheaper while still using Ethereum’s main rules. Arbitrum is a specific technology that helps Layer 2 work well. You can think of Layer 2 like a busy highway on top of a city’s main road. It moves many cars quickly, and then it links back to the main road for final travel. This test version is meant to help developers build and test new ideas for tokenized assets. Tokenized assets are real items or rights that are turned into digital tokens that can be traded or used on a network.

Robinhood Chain’s testnet is meant to speed up the work developers do. The idea is to let engineers and startups try out their programs early, before a full, live launch. A mainnet launch is the big, final release where the system is fully open to everyone. Robinhood says the public testnet will come first, with a mainnet launch planned for later this year. A mainnet is like the finished version of an app that everyone can use, while a testnet is a practice version where people can make mistakes and learn without risking real money.

Arbitrum‑Based Layer 2 Testnet. Robinhood Chain is described as an Arbitrum‑based Layer 2 network. In simple words, it uses Arbitrum technology to help Ethereum run faster and with lower costs. The goal is to keep the security and rules of Ethereum while making transactions smoother. The public testnet is now live, and developers can begin building and testing apps on it. The environment is made to work well with the standard tools that Ethereum developers already use. This helps people who know how to work with Ethereum to start quickly on Robinhood Chain.

Robinhood has already brought in several partners to help the network grow. Some of the first collaborators include Alchemy, Allium, Chainlink, LayerZero, and TRM. These companies are starting to connect their services with the Robinhood Chain. That means they will provide important technology pieces that developers need, such as ways to run applications (infrastructure), data feeds, and secure messaging between different parts of a project. More partners are expected to join during the early stage of the testnet as the network gains momentum.

When the testnet went live, Robinhood opened up access to several features. Participants can use entry points to the testnet and read developer documentation hosted on Robinhood’s website. Early infrastructure support from the ecosystem partners is also available. In simple terms, builders can start testing their apps now with the tools and help they need. This is important because early testing can reveal problems that could slow down or harm the mainnet later on.

The company says the goal of the testnet stage is to let people experiment freely, identify any issues or bugs, improve how stable the network is, and lay a solid foundation for developers before the big mainnet release. In this way, the testnet acts as a practice ground. It helps everyone learn what works well and what needs to be fixed before the system is used by a larger audience.

Robinhood Chain is built on Arbitrum using Robinhood’s existing infrastructure and experience. The release notes say the team focused on reliability, security, and compliance. The network is designed to be safe for financial uses. It supports bridging, which means assets can move between different chains or networks, and self‑custody, which means users can hold and manage their own private keys. The combination of these features helps Robinhood Chain handle complex financial products that require strong safety measures.

Robinhood Chain is meant to support a range of financial‑grade decentralized products. This includes tokenized asset platforms, where real assets are represented by tokens on the network. It also covers lending platforms, where users can borrow and lend digital assets, and perpetual futures exchanges, which are trading venues for long‑term bets on price movements. All of these are areas where speed, security, and customization are very important. Building on Arbitrum gives the chain the scalability needed to handle many transactions and complex operations without slowing things down or making costs too high.

Looking ahead, Robinhood said developers who build on the chain will gain access to assets that exist only on the testnet. These assets include Stock Tokens that can be used for testing. There will also be opportunities to test directly with the Robinhood Wallet, the company’s digital wallet product. The testnet is meant to feel familiar to developers who already work with Ethereum or Arbitrum, making it easier to bring their projects to this new platform.

Beyond the technology and development work, the move highlights how Robinhood is expanding its business in the cryptocurrency space. The company has been increasing its involvement with digital assets since it started offering crypto trading to users. A notable step last year was the completion of a $200 million acquisition of Bitstamp. Bitstamp is a long‑standing cryptocurrency exchange and a key part of Robinhood’s plan to serve institutional crypto clients. The idea was to give Robinhood a stronger base for institutions that want to trade digital assets with more support and infrastructure. In simple language, institutions are large investors and firms that trade in big amounts. Bitstamp helps Robinhood reach these customers more effectively.

However, money flowing from crypto activities at Robinhood has faced some pressure lately. In the fourth quarter of 2025, the company earned $221 million from cryptocurrency trading. This was down 38% from the same period a year earlier. The decline shows that the crypto market can be unpredictable and affected by broader market conditions. Earlier, the company did see a big increase in crypto revenue in a prior quarter, when revenue rose to $268 million. That jump happened during a time of market turmoil, which often changes how much people buy or sell crypto assets.

In summary, Robinhood is moving forward with a new Layer 2 network built on the Arbitrum technology. The goal is to create a fast, safe, and flexible system for tokenized assets and other financial products. The public testnet gives developers a chance to build and test early. It also lays the groundwork for a future mainnet that could serve institutions and individual traders alike. The effort fits into Robinhood’s broader strategy to expand its involvement in crypto and digital finance, building on existing services and partnerships to offer more robust options for both developers and users.

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