Robinhood Launches Blockchain, Robinhood Chain, to Power Crypto & Tokenized Stocks

Robinhood Markets, Inc. Has launched a public testnet for its own blockchain, dubbed Robinhood Chain, marking a significant step in the brokerage’s push to integrate further into the cryptocurrency and tokenized asset landscape. The move, announced at the Consensus conference in Hong Kong on February 11, 2026, signals a broader ambition to leverage blockchain technology across its platform, potentially reshaping how investors access and trade traditional financial instruments.

The Robinhood Chain is built on Arbitrum, a Layer 2 blockchain solution for Ethereum, designed to improve transaction speeds and reduce costs. This architecture is similar to that employed by Robinhood competitor Coinbase, which utilizes Optimism for its Base blockchain. According to Johann Kerbrat, Robinhood’s Senior Vice President of Crypto, the choice of Arbitrum was deliberate, aiming to combine “the security of Ethereum, the liquidity that is available on EVM chains and the Ethereum ecosystem.”

Currently in its testnet phase, the blockchain is accessible to a limited group of partners and developers for testing and refinement. Robinhood plans to transition to a “mainnet” version in the coming months, which will process live customer transactions. Kerbrat emphasized that the blockchain’s integration will be largely seamless for end-users, with many potentially unaware they are interacting with the underlying technology.

The launch of Robinhood Chain is intrinsically linked to the company’s focus on tokenization – the process of representing real-world assets, such as stocks and ETFs, as digital tokens on a blockchain. CEO Vlad Tenev has previously described tokenization as a transformative force in financial markets. Robinhood initially launched stock tokens in the European Union in June 2025, offering European customers access to over 200 US stock and ETF tokens with zero commission fees. The company intends for its own blockchain to further facilitate this process, enabling 24/7 trading, self-custody of assets, and integration with decentralized finance (DeFi) applications.

The potential benefits of tokenization are multifaceted. Beyond around-the-clock trading, tokenized assets can offer increased liquidity, fractional ownership, and reduced settlement times. The ability to self-custody assets – holding the private keys that control ownership – represents a shift towards greater investor control, although it also introduces increased responsibility for security. Robinhood plans to support tokenized transactions both within its self-custody crypto wallet and through its main brokerage app.

The timing of the Robinhood Chain launch coincides with the company’s fourth-quarter earnings report for December 31, 2025. While the company reported a profit of $605 million, or 66 cents per share – exceeding analyst expectations – revenue fell short of forecasts, leading to a decline in share prices during after-hours trading. The investment in blockchain technology and tokenization represents a long-term strategic bet for Robinhood, potentially offsetting short-term revenue fluctuations.

The move by Robinhood to build its own blockchain underscores a growing trend among established financial institutions to explore and adopt blockchain technology. While many firms have experimented with cryptocurrencies, the development of proprietary blockchains signals a desire for greater control over the infrastructure and a commitment to shaping the future of finance. The success of Robinhood Chain will likely depend on its ability to attract developers, build a robust ecosystem, and demonstrate tangible benefits to both institutional and retail investors.

The company’s reliance on Arbitrum, a Layer 2 solution, is a pragmatic approach, leveraging existing technology to accelerate development and reduce costs. However, the long-term vision involves migrating tokenized stocks to the Robinhood Chain itself, optimizing it specifically for real-world asset tokenization. This suggests a potential ambition to become a key infrastructure provider within the evolving blockchain landscape.

The implications of Robinhood Chain extend beyond the company itself. If successful, it could accelerate the adoption of tokenized assets, potentially disrupting traditional trading and settlement processes. The ability to seamlessly integrate tokenized stocks into DeFi applications could unlock new investment opportunities and further blur the lines between traditional finance and the crypto world. However, regulatory hurdles and security concerns remain significant challenges that Robinhood and other players in this space will need to address.