Robinhood is pushing beyond trading apps and Bitcoin price ties — starting today with a public testnet for its new Ethereum-based Robinhood Chain. What’s launching - Robinhood Chain, built on Arbitrum, has opened a public testnet, giving developers access to entry points, documentation and full compatibility with standard Ethereum tooling. The rollout — announced by Johann Kerbrat, SVP and GM of Robinhood Crypto, at Consensus Hong Kong — is the first public step since the chain’s reveal at Robinhood’s Cannes keynote last year. Robinhood says infrastructure partners including Alchemy and LayerZero are already building on the network. (Source: company posts on X and Robinhood.) Why it matters - By using Arbitrum as its foundation, Robinhood Chain aims to lean on an established L2 ecosystem while delivering a familiar developer experience for Ethereum toolsets. That could accelerate third‑party dApp development and broaden Robinhood’s crypto product footprint globally — a core stated priority after recent earnings turbulence. Earnings snapshot and context - Q4 2025: record net revenue of $1.28 billion, up 27% year‑over‑year, but short of Wall Street’s $1.34 billion estimate. Crypto revenue was a weak spot, down 38% YoY to $221 million. Quarterly net income fell 34% to $605 million. Earnings per share were $0.66, slightly above the $0.63 forecast. (Source: Robinhood) - FY 2025: record net revenue of $4.5 billion (up 52% vs. 2024); annual net income rose 35% to $1.9 billion. - Volume metrics: crypto volumes increased 3% quarter‑on‑quarter to $82.4 billion; equities volumes climbed 10% to $710 billion; options contracts rose 8% to 659 million. - New revenue drivers: prediction markets and futures revenue surged 375% YoY to $147 million, exceeding equity‑trading revenue for the first time. Market reaction and the narrative shift - HOOD shares dipped after the revenue miss, but commentary in crypto circles argues the sell‑off may have been overdone. As crypto now represents a smaller piece of Robinhood’s overall revenue, investors are increasingly focused on product diversification and international expansion rather than short‑term BTC correlation. - Areas drawing investor attention: prediction markets and futures, banking services, credit cards, tax tools, and net interest income powered by margin and securities lending. Some analysts and investors see Robinhood approaching a potential $5 billion revenue run rate, with an average price target near $145. Takeaway - The Robinhood Chain testnet signals a concrete step toward building a broader Web3 ecosystem within Robinhood’s platform. Coupled with record annual revenue and rapidly growing non‑equities lines like prediction markets, the company appears to be betting on diversification and global expansion to drive the next phase of growth — even as short‑term crypto revenue faces pressure. Disclaimer: AMBCrypto’s content is informational and not investment advice. Cryptocurrency trading is high risk; do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news