Robinhood has launched a public testenet version of its proprietary layer-2 network developed using Arbitrum’s technology stack.
Summary
- Robinhood has launched the public testnet for its Ethereum layer-2 network, Robinhood Chain.
- The L2 is built using the Arbitrum blockchain’s technology stack.
- Robindhood’s Q4 crypto revenue dropped 38% year-on-year.
According to media reports, a public testnet version for the Ethereum-layer 2, which it calls Robinhood Chain, is now accessible to a closed group of partners and developers who can experiment with integration, access points, and documentation.
Layer 2 blockchains inherit Ethereum’s security while stripping away much of its cost and latency, making them well-suited for the kind of high-frequency retail activity that Robinhood is known for.
A full mainnet launch has been scheduled for later this year, with plans for the launch of the Robinhood Wallet in the coming months.
“We now have Alchemy, LayerZero, Chainlink, and other big crypto players. But moving forward, when the mainnet is live, customers will be able to interact directly with it,” Robinhood’s SVP of Crypto, Johann Kerbrat, said in a statement to Fortune.
Once the Robinhood chain goes live, users will be able to execute transactions through both the Robinhood Wallet and the main Robinhood App, Kerbrat said, adding that the blockchain will provide a seamless customer experience by abstracting away the underlying technical complexity.
With Robinhood Chain, the exchange is following in the footsteps of some of its direct crypto-facing competitors like Coinbase and Kraken, which have either already launched or are building their own layer-2 networks.
Coinbase’s Base, for instance, has emerged as a dominant L2 network with over 5.7 million monthly active users and over $10 million monthly revenue, according to data from Token Terminal.
Robinhood shares dropped over 1% on Feb. 10 and another 7.6% in after-hours trading after the trading platform’s Q4 earnings missed analyst expectations.
Although total net revenues increased 27% year-on-year to $1.28 billion, crypto-based revenues fell 38% when compared to the previous year, in line with the crypto market’s downtrend that has persisted since late October.