Robinhood launches Robinhood Chain mainnet, expands to UK crypto trading
In brief
- Robinhood Chain, an AI-native layer 2 blockchain on Arbitrum, launched after testnet phase
- Robinhood plans UK crypto trading expansion and introduces Robinhood Earn stablecoin lending
- Tokenized stock products now live in 120+ countries; Robinhood shares rose 8%
Mainnet Launch and New Products
Robinhood Chain officially launched after the network went live on testnet in February. The blockchain represents the company's entry into an increasingly competitive layer 2 market dominated by networks such as Base, the Coinbase-backed blockchain. Base holds the second-largest position by total value secured at about $11 billion.
Robinhood also introduced Robinhood Earn, a decentralized product that allows users to lend USDG, a dollar-backed stablecoin, through a self-custody wallet at an estimated 7% annual percentage yield. The company's tokenized stock products were already live and available through its wallet app to users in more than 120 countries.
Expansion and Market Response
Robinhood plans to launch crypto trading in the UK soon, signaling its intent to broaden its regulatory footprint. CEO Vlad Tenev has been vocal about the company's direction—he called tokenized stocks "inevitable" in January, arguing that offering the products could help prevent trading freezes that sometimes occur on traditional exchanges.
The mainnet launch comes at a time when Robinhood's crypto business faces headwinds. The company reported in April that its crypto transaction revenue dropped by almost 50% year-on-year, from $252 million to $134 million. In response, Tenev announced that Robinhood would cut 10% of its workforce as part of a restructuring move.
Market reaction was positive. Robinhood shares rose about 8% on Wednesday, reflecting investor optimism about the blockchain initiative and international expansion plans.
