rewrite this title What Is Robinhood Chain? The Ethereum Layer-2 Network for Tokenized Stocks – Decrypt

Robinhood Chain is a blockchain network developed by Robinhood, the financial services company behind the stock and crypto trading platform.

Launched in mainnet on July 1, 2026, Robinhood Chain—a network built with Ethereum technology—brings together tokenized assets, decentralized finance (DeFi), and smart contracts that can power crypto applications.

“Decentralized finance unlocks possibilities beyond what traditional finance can offer, but historically, it has required technical expertise to navigate,” Johann Kerbrat, SVP and general manager of crypto and international at Robinhood, said in a statement. “We’re bringing the best of traditional finance and DeFi together, and in doing so, expanding financial ownership to every corner of the globe.”

What is Robinhood Chain?

Robinhood Chain gives developers a network for building applications involving financial assets, including tokenized stocks, ETFs, and other real-world assets.

A layer-2 network is a blockchain built on top of another blockchain. Instead of processing every transaction directly on Ethereum’s main network, layer-2 networks handle transactions separately before sending data back for settlement.

This helps reduce fees and typically increases the number of transactions the network can process compared to a layer-1 network like Ethereum.

Robinhood Chain uses ETH as its native gas token, meaning users pay network fees using Ethereum. It also works with the Ethereum Virtual Machine (EVM), the software environment used to run Ethereum smart contracts. Developers can use existing Ethereum programming languages and tools to build applications on the network.

Robinhood Chain uses the Arbitrum Dedicated Blockchains framework, a customizable layer-2 system created by Offchain Labs.

Wallets and applications that support Ethereum connections can interact with the network through JSON-RPC, a standard communication method used by Ethereum applications.

How are transactions processed?

Robinhood Chain uses a first-come, first-served sequencing model.

A sequencer orders transactions before they are added to a blockchain. On Robinhood Chain, transactions are processed based on when they arrive, rather than allowing users to pay higher fees for priority placement.

Transactions move through several stages:

The sequencer receives and processes the transaction.
Transaction batches are posted back to Ethereum.
The transaction reaches final settlement.

What are Robinhood Stock Tokens?

Stock Tokens are blockchain-based assets issued by Robinhood that provide exposure to real-world assets (RWAs), including stocks and exchange-traded funds (ETFs).

RWAs are tokens connected to assets outside crypto, such as stocks, bonds, commodities, or real estate. Because they exist on-chain, they can interact with applications including trading platforms, lending protocols, and other smart contract-based tools.

Stock Tokens are not the same as owning company shares. They provide exposure to an underlying asset but do not provide legal ownership rights, including shareholder voting rights. They also are not available to U.S. users, as of this writing.

“Stock Tokens are not registered under U.S. securities laws and may not be offered, sold, or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. persons,” Robinhood wrote on its website. Offers and sales of Stock Tokens are subject to restrictions in other jurisdictions, including, without limitation, Canada, the United Kingdom, and Switzerland.”

Which applications run on Robinhood Chain?

Robinhood Chain works with decentralized exchanges, lending protocols, oracle services, and infrastructure providers.

Decentralized exchanges, or DEXs, allow users to trade blockchain assets through smart contracts instead of traditional intermediaries. Many DEXs use automated market makers (AMMs), which rely on pools of assets instead of traditional order books. Uniswap is among the exchanges available on the network.

Lending protocols allow users to supply assets through smart contracts that others can borrow from. Robinhood’s DeFi products include integrations with Morpho, a decentralized lending protocol.

Oracles connect blockchains to external information, such as asset prices. Robinhood Chain uses Chainlink price feeds to provide market data to applications. Other infrastructure providers include Alchemy for developer tools, BitGo for institutional custody, and Paxos for USDG stablecoin support.

What happened after launch?

Following its mainnet rollout, Robinhood Chain saw a surge of activity from traders and decentralized applications.

In its first week, the network recorded more than 17 million transactions, nearly 350,000 addresses, and more than $1 billion in decentralized exchange volume. While internal company metrics estimated the protocol’s total value locked (TVL) at $250 million, independent data from DefiLlama tracked the core protocol TVL at roughly $94 million, with network stablecoin balances climbing past $260 million.

Part of that initial momentum was due to the meme coin Cash Cat (CASHCAT), which saw a surge in value as crypto traders attempted to ride the wave of hype around the newly launched network. Other meme coins on the network have seen growing demand following Cash Cat’s rapid rise to prominence.