Robinhood’s strategic blockchain decision
Robinhood’s crypto division made a pretty interesting choice last year when they decided to build on Ethereum’s layer-2 ecosystem rather than creating their own independent blockchain. Johann Kerbrat, who leads their crypto efforts, explained the thinking behind this move. He’ll be speaking about it at an upcoming conference in Hong Kong next month.
I think what’s notable here is the practical approach they took. They considered building a layer-1 network but ultimately decided against it. The reasoning was straightforward enough – they wanted Ethereum’s security and decentralization without having to build those features themselves. Kerbrat mentioned they also wanted access to the existing liquidity within the Ethereum ecosystem.
Focusing on what they do best
Perhaps the most telling part of their strategy is what Kerbrat said about focus. “We wanted to be able to really focus on what we are good at,” he explained. For Robinhood, that means building features like their tokenized stocks program rather than solving complex blockchain infrastructure problems.
It’s a sensible approach, really. By using Arbitrum’s technology, they can offload some of the hardest technical challenges. Kerbrat put it simply: “That way we don’t have to focus on decentralization and security. This is kind of for free by Ethereum.”
Their layer-2 chain is still in development on a private testnet, with no public launch date announced yet. But what’s interesting is their current tokenized stocks already live on Arbitrum One. This could make the eventual transition to their own chain smoother.
Tokenized assets gaining traction
The tokenized stocks program has been growing faster than expected. They started with about 200 stock tokens in June and have now passed 2,000. Customer demand pushed this expansion, with users wanting access to more of their portfolio.
Kerbrat sees this as just the beginning. He mentioned they’re looking beyond public stocks to private equity, real estate, and even art – basically anything that can be tokenized. It’s an ambitious vision, but one that makes sense given their position in the market.
They’ve also been expanding their staking products, which customers had been requesting. They launched staking in Europe first, then expanded to most U.S. states after regulatory guidance became clearer. The adoption has been strong, according to Kerbrat.
Looking ahead
Kerbrat believes tokenized assets will reshape how yield is generated across both crypto and traditional finance. With more assets coming onchain, he expects to see new lending programs emerge.
Despite the fragmentation happening in blockchain infrastructure, Kerbrat thinks new layers will develop to harmonize everything. He sees this technology already starting to replace some traditional finance foundations.
For now, Robinhood’s priority remains clear: focusing on bringing new assets onchain. Their approach seems to be about building on existing infrastructure rather than reinventing everything from scratch. It’s a pragmatic strategy that lets them concentrate on their core strengths while leveraging Ethereum’s established ecosystem.
Their tokenized stocks program shows there’s real demand for these kinds of products. The growth from 200 to 2,000 tokens in just a few months suggests customers are embracing the concept. Whether this momentum continues as they expand into other asset classes remains to be seen, but the early signs are promising.
