Robinhood launches Layer-2 chain for tokenized stocks outside US
Robinhood has launched its own Ethereum layer-2 network to facilitate the trading and lending of tokenized stocks and ETFs, explicitly bypassing U.S. securities regulations to test the demand for decentralized traditional finance.
Robinhood deployed its proprietary blockchain, Robinhood Chain, on July 1, 2026. The Ethereum layer-2 network is built using Offchain Labs’ Arbitrum framework and is designed specifically to support tokenized real-world assets. The platform allows developers to build decentralized applications around financial instruments like stocks and exchange-traded funds.
Central to the network are Robinhood’s Stock Tokens, which track the value of real-world equities but do not confer legal ownership or shareholder voting rights. Due to regulatory constraints, these tokens cannot be offered to U.S. persons, nor are they available in Canada, the United Kingdom, or Switzerland. “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 stated.
The network uses Ethereum as its native gas token and is fully compatible with the Ethereum Virtual Machine. It employs a first-come, first-served transaction sequencing model, eliminating the ability for users to pay higher fees for priority placement.
Robinhood has integrated major decentralized finance infrastructure to support the network. Partners include Uniswap for trading, Morpho for lending, Chainlink for price data, BitGo for institutional custody, and Paxos for USDG stablecoin support.
In its first week, the network processed over 17 million transactions across nearly 350,000 addresses, generating more than $1 billion in decentralized exchange volume. Independent data from DefiLlama pegs the core protocol's total value locked at roughly $94 million, contrasting with Robinhood's internal estimate of $250 million, while network stablecoin balances climbed past $260 million.
A significant portion of that early trading volume was driven by speculative demand for the meme coin Cash Cat (CASHCAT). Johann Kerbrat, Robinhood’s SVP and general manager of crypto and international, framed the launch as a structural bridge between traditional markets and decentralized infrastructure.
“Decentralized finance unlocks possibilities beyond what traditional finance can offer, but historically, it has required technical expertise to navigate,” Kerbrat said. “We’re bringing the best of traditional finance and DeFi together, and in doing so, expanding financial ownership to every corner of the globe.”
