In a significant move for the cryptocurrency and financial sectors, Robinhood has unveiled plans to develop an Ethereum Layer-2 network utilizing Arbitrum. This initiative aims to enhance their offerings in stock tokenization and is currently in the private testnet phase.
Leading the charge is Johann Kerbrat, Head of Robinhood Crypto, who emphasized the necessity of leveraging Ethereum”s robust security and liquidity features. By adopting Arbitrum, Robinhood is strategically aligned with existing infrastructure, allowing them to concentrate on their strengths in tokenization and further integrate blockchain technology into their operations.
The new Layer-2 network will initially support tokenized stocks issued on Arbitrum, with plans for these assets to eventually migrate to Robinhood”s proprietary blockchain. This transition signifies Robinhood”s commitment to expanding its financial product suite, which has already seen over 2,000 stocks tokenized.
Community feedback has highlighted the potential ramifications for both the Ethereum and Arbitrum ecosystems. As Ethereum continues to play a pivotal role in this transition, its inherent security and decentralized nature are crucial to the project”s success. The activity surrounding Robinhood”s deployer address on Arbitrum showcases its growing influence in the market.
As Robinhood embraces Layer-2 solutions, it echoes a broader trend among major platforms opting for similar strategies, such as Coinbase“s Base on the OP Stack. The industry is witnessing a shift towards leveraging established security frameworks while exploring innovative financial integrations.
In a recent market update, data from CoinMarketCap indicates that as of January 11, 2026, Ethereum is trading at $3,119.97, with a market cap of $376.56 billion and a 24-hour trading volume of $8.83 billion. However, over the last 90 days, Ethereum”s price has experienced a decline of 26.88%, reflecting ongoing market challenges.
The Coincu research team suggests that Robinhood”s move towards Layer-2 could facilitate greater financial integration and regulatory clarity within the crypto space. This development may set important precedents for institutional adoption and technological advancements in managing digital assets.
