Robinhood Builds Layer-2 on Ethereum’s Arbitrum to Tokenize Stocks

Johann Kerbrat, Head of Robinhood Crypto, announced the development of an Ethereum Layer-2 network based on Arbitrum, currently in private testnet, to enhance stock tokenization.

Robinhood leverages Ethereum’s ecosystem, focusing resources on core innovations. Tokenized stocks, migrating to the Layer-2 chain, signal significant fintech integration into blockchain technology.

Robinhood Expands Tokenized Stocks via Ethereum’s Arbitrum

Robinhood’s decision to build on Arbitrum Layer-2, rather than launching a standalone Layer-1, underscores its strategic reliance on Ethereum’s existing infrastructure. This allows Robinhood Crypto, led by Johann Kerbrat, to focus on their core competencies in tokenization while benefiting from Ethereum’s established market position. Currently, their proprietary L2 is in a private testnet phase.

Tokenized stocks issued initially on Arbitrum will migrate to Robinhood’s own chain. This reflects Robinhood’s commitment to enhancing financial product offerings, with over 2,000 stocks tokenized to date. This strategy aims to streamline crypto operations and increase accessibility.

Johann Kerbrat, General Manager of Robinhood Crypto, “Stock tokens will initially be issued on Arbitrum. In the future, tokenized stocks will be facilitated by our very own Robinhood Layer 2 blockchain, based on Arbitrum.” – Robinhood’s Stock Tokens + L2 Blockchain Launch Announcement

Community responses have highlighted the potential implications for Ethereum and Arbitrum ecosystems. As Ethereum remains integral to this shift, its network security and decentralization benefits are pivotal. The Robinhood: Deployer address on Arbitrum shows substantial on-chain activity, underscoring its market impact.

Ethereum Market Update Amid L2 Adoption by Robinhood

Did you know? Robinhood’s strategic decision to build on Arbitrum aligns with trends by major platforms opting for Ethereum Layer-2 solutions, like Coinbase’s Base on OP Stack, to leverage existing security infrastructure.

As of January 11, 2026, data from CoinMarketCap shows Ethereum (ETH) trading at $3,119.97, with a market cap of $376.56 billion. The 24-hour trading volume stands at $8.83 billion. Over the last 90 days, Ethereum’s price has seen a 26.88% decrease, reflecting broader market trends.

The Coincu research team highlights that Robinhood’s adoption of Layer-2 solutions could pave the way for greater financial integration and regulation. As crypto markets adapt, this may set precedents for institutional adoption and further technological developments in digital asset management.