Robinhood has launched the public testnet for Robinhood Chain, an Ethereum Layer-2 (L2) blockchain built on Arbitrum. This initiative aims to foster the development of on-chain financial services, with a focus on tokenized real-world assets (RWAs) and digital assets. The testnet allows developers to experiment with the platform and identify potential issues before the mainnet launch.

The launch of Robinhood Chain's testnet marks a significant step for the trading platform as it expands its footprint in the digital assets arena. Robinhood's Senior Vice President and General Manager of Crypto, Johann Kerbrat, stated that the testnet lays the groundwork for an ecosystem that will define the future of tokenized RWAs and enable builders to tap into DeFi liquidity within the Ethereum ecosystem.

Robinhood has been exploring tokenized stocks, launching them for European customers in June 2025. This offering provided exposure to over 2,000 U.S.-listed equities with 24/5 trading, with the tokens issued on Arbitrum One. Last month, the company announced plans to expand its tokenized stock offering to include round-the-clock trading, near-real-time settlement, and self-custody.

The company views this new L2 chain as a way to accelerate its efforts in bringing traditional financial assets on-chain. The testnet will support experimentation to identify issues and improve network stability ahead of a mainnet launch. Developers can now start building with the core infrastructure.

This move comes at a time when Robinhood's cryptocurrency transaction revenue experienced a year-over-year decrease of 38% during the fourth quarter of last year, totaling $221 million. This figure represents a slowdown compared to the third quarter when crypto revenue surged to $268 million. Despite the recent dip in revenue, Robinhood continues to invest in the crypto space, as demonstrated by the launch of the Robinhood Chain testnet.