Key facts
- Robinhood launched the public mainnet of its Ethereum layer-2 network, Robinhood Chain.
- The network is built on Arbitrum and is described as "AI-native".
- It will support trading by AI agents and integrate tokenized stocks.
- Users in eligible jurisdictions outside the U.S. can use tokenized stocks in DeFi protocols.
- Robinhood is expanding its crypto services to Canada and Singapore, with the U.K. planned.
Brokerage and financial app Robinhood has launched the public mainnet for its Ethereum layer-2 network, named Robinhood Chain. Built on Arbitrum, the network is described as "AI-native" and aims to connect traditional finance with decentralized finance. It will initially feature integrations with BitGo and Chainlink, and partnerships with Uniswap and Pleiades for liquidity and prop trading.
Robinhood's SVP and General Manager of Crypto and International, Johann Kerbrat, stated that the network seeks to combine the strengths of traditional finance and DeFi, thereby broadening financial ownership globally. The chain will support trading by AI agents and introduce "Stock Tokens," which are on-chain representations of shares in major companies like Nvidia and Apple. These tokens will be available for users in eligible jurisdictions outside the U.S. to participate in lending pools and use as collateral in DeFi.
Further enhancements include expanded features within the Robinhood Wallet, such as direct in-wallet trading on the decentralized perpetuals exchange Lighter. Eligible U.S. users will also gain access to Robinhood Earn, allowing them to lend USDG stablecoins for approximately 7% APY.
The company is also pursuing significant geographic expansion, welcoming users from Canada and soon Singapore, adding to its existing customer base of nearly 28 million. Crypto services are also expected to be offered in the U.K. in the near future.
Robinhood's stock (HOOD) saw an increase of over 8% on Wednesday, contributing to a nearly 20% rise in the past month. However, the stock remains over 29% below its 52-week high. This development follows a period where the company reduced its workforce by about 10% due to a substantial downturn in revenue from its crypto offerings, which fell 34% quarter-over-quarter to $134 million.