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Robinhood Launches Layer 2 Blockchain Built on Arbitrum


Robinhood launches Robinhood Chain testnet on Arbitrum, enabling tokenized real world assets, and developer focused blockchain infrastructure.

Robinhood has officially launched Robinhood Chain, a new Layer 2 blockchain built on Arbitrum technology. The network is also fully compatible with Ethereum and is targeting financial services and tokenized real-world assets. Meanwhile, the public testnet is now live and developers can start conducting early testing and validation.

Robinhood Introduces Blockchain Focused on Tokenized Financial Services

Robinhood Chain is meant to support regulated financial products and blockchain-based asset issuance. Accordingly, the focus of the company is to bridge traditional finance with the decentralized infrastructure using Ethereum standards. This move represents an increase in institutional interest in asset tokenization.

The testnet is a way for developers to get a feel for the foundation that will be built in the future when the mainnet launches. Also, builders can test applications in a controlled environment. This phase is useful in identifying issues and enhancing the stability of the network as well as strengthening the performance of the network.

Related Reading: Robinhood CEO Says Tokenization Is the Answer to GameStop-Style Freezes | Live Bitcoin News

Several big infrastructure providers have already integrated with Robinhood Chain. These include Alchemy, Allium, Chainlink, LayerZero, and TRM, according to the company. In addition, there are more partners expected to be onboarded in the early stages of the testnet.

Johann Kerbrat, SVP and GM of Crypto and International at Robinhood, provided some official comments. He said the testnet provides groundwork for tokenized assets while facilitating access to Ethereum-based DeFi liquidity. Furthermore, he focused on cooperation with infrastructure partners.

The developer documentation is now available to the public via the official channels of Robinhood. Developers have access to network entry points, technical guides and setup instructions. As a result, it becomes easier for Ethereum and Arbitrum-based teams to onboard.

Testnet Features Highlight Push Toward Onchain Finance

Robinhood Chain has compatibility with standard Ethereum development tools. Therefore, developers can deploy smart contracts using familiar workflows. 

The testnet is also supported by early infrastructure support by verified ecosystem partners. As a result, oracle service, cross-chain messaging and compliance services can be tested by developers. These are key features of financial-grade decentralized products.

Robinhood said the chain was designed with reliability, security and compliance in its design. It supports easy integration with bridging and self-custody features for the users. In addition, scalability enables complex financial applications to perform their functions effectively.

Some planned use cases include tokenized asset platforms, lending protocols and perpetual futures exchanges. Such platforms demand predictable fees, high security and high throughput. Robinhood intends to fulfil these requirements on the Arbitrum architecture.

In the next few months, developers will get access to testnet only assets, such as Stock Tokens. Such assets are meant exclusively for integration testing purposes. Direct testing using Robinhood Wallet will also be added.

Steven Goldfeder, CEO of Offchain Labs, commented on the partnership. The next phase of tokenization is supported by the way Arbitrum’s developer is friendly, he said. He went on to say that a partnership with Robinhood could help speed up permissionless financial services adoption.

Overall, Robinhood Chain has the company sitting in the midst of the rising sector of tokenization. As institutions, in part, explore blockchain infrastructure, compliant Layer 2 networks attain relevance. As a result, this launch could have an impact on the financial platforms and onchain market development in future.





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