Robinhood Launches Testnet for Tokenized Asset Blockchain

Brokerage firm Robinhood has launched a public testnet for its own Ethereum-based blockchain, a strategic pivot into the burgeoning field of tokenized real-world assets (RWAs). The move signals a focus on creating a specialized environment for regulated financial products rather than competing on transaction speed alone, placing it in a growing market for on-chain securities.

According to the company, the new Layer-2 network is designed to leverage the security and liquidity of the Ethereum ecosystem while offering a customizable platform for tokenizing assets like equities. In an interview, Robinhood Crypto’s Senior Vice President and General Manager, Johann Kerbrat, stated the goal was not primarily about scaling Ethereum’s transaction capacity. “What we wanted was the security of Ethereum,” Kerbrat said, adding, “but we were also wanting to have a way to customize the chain and to make it really optimized for traditional assets being tokenized.”

• Market Position: Robinhood’s existing tokenized equity efforts are currently lagging behind established leaders in the space. According to data from Entropy Advisors cited on Dune Analytics, Robinhood’s minted equity token volume is smaller than that of issuers like xStocks and Ondo Global Markets (company claim).

Robinhood’s strategy reflects an evolution in the purpose of Layer-2 networks, shifting from purely scaling solutions to application-specific environments. Instead of building a general-purpose chain for high-speed trading, Robinhood is developing a platform tailored to the compliance and structural needs of regulated financial products. This positions it to compete with RWA-focused platforms like Ondo Finance, which specializes in tokenized U.S. Treasuries. The success of this specialized chain will depend on its ability to navigate complex regulatory requirements and attract institutional partners to issue assets on its network.

With the testnet now live, the next major step for Robinhood Crypto will be the eventual launch of the mainnet. The company has not yet provided a public timeline for the full rollout. Industry observers will be watching to see if Robinhood can successfully attract asset issuers and build liquidity, potentially creating a significant new revenue stream by bridging traditional financial assets with the digital ecosystem. The project’s development follows earlier announcements of the company’s intent to build its own blockchain solution.

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