Robinhood Unveils Layer-2 Blockchain to Power Tokenized Stocks With Arbitrum

Robinhood is expanding its crypto footprint with two major upgrades: tokenized stock trading and its own Arbitrum‑based Layer‑2 blockchain. Both innovations aim to redefine how users access real‑world assets onchain.

Tokenized US Stocks Available in Europe

Robinhood now offers over 200 tokenized US equities and ETFs to European investors via its crypto‑focused app. These stock tokens are issued on Ethereum’s Layer‑2 network, Arbitrum, granting access to 24‑hour trading, Monday through Friday.

The firm describes this rollout as transforming its platform into an “all‑in‑one investment app powered by crypto.” Token holders will receive zero‑commission trades, support for authentic dividend payouts, and real‑time price exposure—all backed by digital tokens.

For example, EU customers can trade Apple, Tesla, or other US favorites using stock tokens. This expansion follows in the footsteps of Gemini, which recently launched tokenized shares of MicroStrategy (MSTR) in Europe.

Robinhood’s Custom Layer‑2 Blockchain

Beyond stock tokens, Robinhood is developing its own Layer‑2 blockchain, built on the same tech that powers Arbitrum. This private chain is designed for tokenized real‑world assets, with key features including:

• 24/7 trading support, removing time-zone constraints
• Self‑custody options for users holding tokens
• Cross‑chain bridging, enabling tokens to move freely across networks

Launch timing remains tentative, but insiders suggest a release late this year or early next.

Expanded Crypto Products for EU and US Markets

Robinhood also introduced perpetual futures in the EU, offering up to 3× leverage, handled through its recently acquired Bitstamp exchange. Additionally, crypto staking is now available for US users, starting with Ethereum and Solana.

The firm added Cortex, an AI-powered investing assistant, and smart exchange routing to help users optimize their trades across multiple venues.

Market and Network Reaction

Shares of Robinhood surged 12.7% to a record $94.24 following the announcement, closing at $93.63. Meanwhile, Arbitrum's token, ARB, spiked over 20% before stabilizing near $0.34—driven by speculation of Robinhood’s involvement.

According to DeFiLlama, Arbitrum saw 410,000 active addresses in 24 hours—a jump of 25% from the previous week. That increase correlates with the Robinhood news and growing interest in tokenized assets.

However, according to FXSTREET, recent blockchain data reveals significant ARB movements by institutional players:

• Anchorage Digital sent 50.1 million ARB to Wintermute’s wallet
• A wallet tied to Monetalis added 42.19 million ARB, now holding 77.12 million
• Gelato Network moved 20 million ARB to a market‑maker account

These transfers suggest major holders are taking profits, possibly after the Robinhood-driven rally.

Worth noting, the tokenized stocks are currently available only to European users, where regulatory frameworks allow such offerings. US availability may require approval from US authorities, notably the SEC.

Robinhood’s Layer‑2 rollback will need technical fine‑tuning and regulatory compliance before launch. But if successful, it could dramatically widen access to tokenized assets worldwide.