Robinhood launched a public testnet for Robinhood Chain, a second-layer Ethereum financial layer built on Arbitrum. Johann Kerbrat, SVP and CEO of Robinhood Crypto, announced the testnet during Consensus Hong Kong on Wednesday. This is the first public phase of the development of the chain, which the company had already announced during its speech in Cannes a year ago.
In an interview for BeInCrypto in Hong Kong before the announcement, Kerbrat presented the company's vision regarding the blockchain. Plans include the tokenization of real assets, 24/7 trading, and a hackathon program for developers with a prize pool of 1 million USD.
Why build your own chain
The testnet provides access to network entry points, developer documentation, and full compatibility with standard Ethereum development tools. Ecosystem partners, such as Alchemy and LayerZero, are already building on this chain.
The launch of the testnet came at an important moment. Robinhood revealed $1.28 billion in revenue for the fourth quarter on Tuesday, which did not meet analysts' expectations of $1.35 billion. Revenues from crypto transactions fell to $221 million from $268 million in the previous quarter, while Bitcoin dropped by 23% during this period. The company's stock price fell from an all-time high of $154 in October, along with the broader crypto market weakening.
Robinhood first introduced tokenized American stocks for EU clients in July 2025 through a partnership with Arbitrum. It provided tokens linked to over 200 American stocks and ETFs without commissions. The offering now includes over 1000 stock tokens in the EU and EEA. However, the company aimed from the start to migrate to its own chain.
From the beginning, it has been a two-step process. Arbitrum technology allows launching a product on Arbitrum One first and then moving to its own chain.
The main theme is the ability to customize. Multifunctional Layer 2 solutions ensure compliance with regulations at the smart contract level, but Robinhood Chain implements regulatory requirements directly at the chain level. This is particularly important for tokenized securities, where the process of issuing and burning stock tokens is subject to different rules in different countries.
The chain itself remains open — anyone can build on it — but the products developed by Robinhood are specifically designed for regulated financial services.
From token stocks to real assets
Tokenized stocks were the starting point, but Robinhood's ambitions go beyond just publicly traded companies. Kerbrat said that their tokenization engine is ultimately intended to also support private equity, real estate, art, and other real assets.
A key part of the offering is extending trading hours. Robinhood stock tokens can already be traded 24/7, five days a week. Migration to Robinhood Chain aims to enable trading 24/7 — without interruptions caused by traditional market hours.
Instant settlements and self-custody of assets are also on the agenda. Additionally, Robinhood plans to integrate with liquidity pools and lending protocols. This will significantly enhance functionality over the current product with tokenized stocks, based on Arbitrum One infrastructure.
Developer ecosystem and focus on DeFi
In the near future, Robinhood wants to attract developers to build decentralized exchanges, perpetual trading platforms, and lending protocols on the new chain. These are natural extensions of the company's brokerage and crypto offerings.
To revitalize the ecosystem, the company plans to organize a series of hackathons on different continents, with a total prize pool of $1 million. Kerbrat stated that the focus will primarily be on financial applications.
Expansion in the Asia-Pacific region
The launch of the testnet at Consensus Hong Kong coincides with Robinhood's strengthening expansion in the Asia-Pacific region. In June 2025, Robinhood finalized the acquisition of Bitstamp for $200 million. It gained access to over 50 active licenses and registrations worldwide and institutional crypto services as a service.
Kerbrat said that the event provided an opportunity for face-to-face meetings with Bitstamp clients from Singapore. Through the acquisition, Robinhood now has licenses in Singapore and Indonesia. Additionally, it acquired two smaller Indonesian firms to build a local presence.
Indonesia, with around 13 million crypto users, is a priority market. Kerbrat said that early discussions with regulators in Indonesia have been positive. The discussions focused on compliance with AML and risk disclosure, rather than blocking the company's entry into the market.
Robinhood's regulatory history — covering FINRA, New York DFS, MiCA in the EU, and MAS in Singapore — gives the company confidence in navigating various jurisdictions, Kerbrat emphasized.
Diversification of the revenue model
The disappointing results for Q4 underscore the ongoing challenge — Robinhood's heavy reliance on transaction revenues, especially from crypto trading. The company is working on diversification across many areas.
Staking, launched in the USA in 2025, has achieved around $1 billion in locked assets. The Robinhood Chain is also expected to start generating new revenue sources related to infrastructure.
In the trading segment, Robinhood is investing in advanced tools to attract high-frequency and high-volume investors. This group — according to Kerbrat — provides a more stable level of revenue even in a weaker market. The company has also increased the number of fee tiers from three to seven, with commissions for large investors dropping to as low as 0.03%.
The institutional channel is also growing. Crypto as a service offering from Bitstamp allows banks, hedge funds, and family offices to provide their clients access to crypto. Kerbrat notes that institutions usually enter the market during downturns, providing a counter-cyclical buffer.
Meanwhile, prediction markets have proven to be a strong point. CEO Vlad Tenev said at a company event in December that prediction markets are “the fastest-growing product line at Robinhood in terms of revenue,” with 11 billion contracts executed by over a million clients.
What's next
The public testnet is the first stage of a multi-phase deployment. Robinhood plans to migrate its existing token stock products to this blockchain before ultimately transitioning to the mainnet. The company has not yet provided a specific launch date for the mainnet.
Tenev said in the company's fourth-quarter financial statement that their vision has not changed. Robinhood is building a financial superapp.
