Robinhood Chain brings tokenized stocks to an Ethereum layer 2
Robinhood’s new blockchain uses Arbitrum technology to support stock tokens, ETFs and DeFi apps outside the U.S. market.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Robinhood has launched Robinhood Chain, an Ethereum layer-2 network built to support tokenized stocks, ETFs and other real-world assets. For everyday investors, the key point is access: Robinhood is trying to make traditional market exposure work inside crypto apps, though its Stock Tokens are not available to U.S. users.
The network went live on mainnet on July 1, 2026, according to Robinhood. It uses Ethereum technology, smart contracts and decentralized finance tools, with infrastructure built through Arbitrum Dedicated Blockchains, a customizable layer-2 framework from Offchain Labs.
Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, said in a company statement that decentralized finance has offered features beyond traditional finance but has often required technical skill to use. Robinhood is aiming to combine traditional finance and DeFi, Kerbrat said, while expanding financial ownership globally.
How the network works
A layer-2 network is a blockchain that runs on top of another blockchain. In this case, Robinhood Chain processes transactions away from Ethereum’s main network, then sends data back to Ethereum for settlement. That setup is designed to lower fees and increase transaction capacity compared with using Ethereum directly.
Robinhood Chain uses ETH as its gas token. Gas is the fee users pay to run transactions or smart contracts on a blockchain, so users pay network costs in Ethereum.
The chain is also compatible with the Ethereum Virtual Machine, or EVM, the software environment that runs Ethereum smart contracts. That means developers can use familiar Ethereum tools and programming languages to build apps for Robinhood Chain.
Ethereum wallets and apps can connect to Robinhood Chain through JSON-RPC, a common method that blockchain apps use to communicate with Ethereum-style networks, according to Robinhood’s developer documentation.
Stock tokens are exposure, not shares
Robinhood Stock Tokens are blockchain-based assets issued by Robinhood that track real-world assets such as stocks and exchange-traded funds. Real-world assets, often called RWAs in crypto, are tokens tied to assets outside the blockchain world, including equities, bonds, commodities or real estate.
Because these tokens live on-chain, they can be used with smart-contract applications, including trading platforms and lending protocols. That does not make them the same as owning the underlying stock.
Robinhood says Stock Tokens give exposure to an asset but do not provide legal ownership rights, including shareholder voting rights. The company also says the tokens are not registered under U.S. securities laws and may not be offered, sold or delivered in the United States or to U.S. persons. Robinhood notes that sales are also restricted in other jurisdictions, including Canada, the United Kingdom and Switzerland.
DeFi apps on Robinhood Chain
Robinhood Chain is designed to work with decentralized exchanges, lending protocols, oracles and infrastructure providers. A decentralized exchange, or DEX, lets users trade blockchain assets through smart contracts rather than a traditional broker or exchange operator. Uniswap is among the exchanges available on the network.
Robinhood’s DeFi products also include integrations with Morpho, a decentralized lending protocol. Lending protocols let users supply assets to smart contracts that other users can borrow from.
The network uses Chainlink price feeds for market data. Oracles such as Chainlink connect blockchains to outside information, including asset prices. Robinhood also lists Alchemy for developer tools, BitGo for institutional custody and Paxos for USDG stablecoin support as infrastructure providers.
Robinhood Chain uses a first-come, first-served sequencing model. A sequencer is the system that orders transactions before they are added to the blockchain. On Robinhood Chain, transactions are processed based on arrival time rather than letting users pay extra fees to move ahead in line, according to Robinhood.
This story draws on original reporting from Decrypt.