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Robinhood rolls out public blockchain, plans crypto trading for UK residents
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- DeepHorus
Robinhood has officially launched its public mainnet, Robinhood Chain, a layer-2 blockchain built on Arbitrum, marking its entry into the decentralized finance (DeFi) space. The network went live on Wednesday after four months of testing on testnet since February. The company also announced plans to launch cryptocurrency trading for UK residents and expanded its tokenized stock products to users in over 120 countries via its wallet app. This move signals Robinhood's ambition to become a major player in both crypto and traditional finance integration.
The blockchain, described by Robinhood as 'AI-native and purpose-built for real-world assets,' is part of a broader strategy to offer DeFi services alongside its stock and crypto trading platform. CEO Vlad Tenev had previously called tokenized stocks 'inevitable' in January, arguing they could prevent trading freezes seen on traditional exchanges. Robinhood Chain aims to provide a scalable infrastructure for tokenized assets and other financial products.
The launch comes amid a challenging period for Robinhood, which recently cut 10% of its workforce as part of a restructuring. The company is set to announce its 2026 second-quarter results on July 29, but its crypto transaction revenue plummeted nearly 50% year-over-year, from $252 million to $134 million in the first quarter. Despite this, Robinhood shares rose about 8% on Wednesday, reflecting investor optimism around the new blockchain and DeFi products.
Robinhood also introduced Robinhood Earn, a DeFi lending product that lets users lend USDG, a dollar-backed stablecoin, through a self-custody wallet at an estimated 7% annual percentage yield. These offerings aim to attract users seeking yield-generation opportunities outside traditional banking. However, Robinhood faces stiff competition in the layer-2 blockchain market, which is dominated by networks like Base, the Coinbase-backed chain that recently experienced two back-to-back outages in June due to a sequencer bug. Base is currently the second-largest layer-2 network by total value secured, at about $11 billion.
Industry observers view Robinhood's blockchain launch as a strategic move to diversify revenue streams beyond transaction fees, which have declined sharply. By offering tokenized stocks and DeFi lending, Robinhood is positioning itself as a bridge between traditional finance and crypto. The UK crypto trading expansion could tap into a market with growing demand for regulated digital asset services.
Looking ahead, Robinhood plans to continue expanding its DeFi ecosystem and tokenized offerings. The success of Robinhood Chain will depend on its ability to attract developers and users in a competitive landscape. With the company’s established user base and brand recognition, however, it has the potential to become a significant player in the layer-2 space. The upcoming earnings report will provide further insight into the financial impact of these initiatives.
