Robinhood May Enter the L2 Race as Tokenized US Stocks Gain Momentum

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The world of financial technology is evolving rapidly, and one of the most anticipated developments in 2025 is the tokenization of traditional financial assets—especially U.S. equities. At the forefront of this shift stands Robinhood, the popular fintech platform known for democratizing stock trading. Recent reports suggest that Robinhood may be preparing to launch its own Layer 2 (L2) blockchain solution built on Arbitrum’s technology stack, aiming to enable seamless, blockchain-based trading of U.S. stocks for European investors.

This move would mark a significant step toward bridging traditional finance with decentralized infrastructure—and could reshape how global investors access American equities.

The Rise of Tokenized U.S. Stocks

Tokenized securities are digital representations of real-world assets recorded on a blockchain. In the case of U.S. stocks, tokenization allows fractional ownership, faster settlement, and 24/7 trading—features that appeal to both retail and institutional investors.

Interest in tokenized equities has surged in recent months. In May, Kraken announced plans to offer tokenized U.S. stocks to non-U.S. clients. Around the same time, Coinbase revealed it was seeking SEC approval for its own tokenized stock offerings. These moves signaled a broader industry trend: crypto-native platforms are expanding into regulated financial products.

Now, Robinhood appears poised to join them—with a more ambitious approach.

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Robinhood’s Blockchain Ambitions: Building a Custom L2?

According to Bloomberg sources, Robinhood is developing a blockchain-based platform that will allow European retail investors to trade U.S. stocks. While technical details remain unconfirmed, two possibilities have emerged:

  1. Direct integration with an existing L2 like Arbitrum or Solana.
  2. A more likely scenario: building a custom L2 chain using Arbitrum Chains, leveraging Arbitrum’s Optimistic Rollup framework, EVM compatibility, and modular architecture.

By creating a dedicated L2, Robinhood could maintain full control over compliance, user experience, and transaction finality—critical factors when handling regulated securities.

This strategic decision aligns with Robinhood’s long-standing interest in blockchain innovation. At EthCC in Cannes—where the company is scheduled to make an official announcement—expectations are high that they’ll unveil their L2 initiative.

Adding fuel to speculation, Arbitrum’s Chief Strategy Officer, A.J. Warner, will also attend the event. Could this signal a joint announcement? Market reactions suggest so: ARB’s price spiked over 20% following the news.

Strategic Foundations: Why This Isn’t Out of Nowhere

Robinhood’s pivot toward on-chain securities isn’t sudden—it’s been years in the making.

In January 2025, CEO Vlad Tenev criticized U.S. regulatory ambiguity around security tokens, arguing that unclear rules stifle innovation. He emphasized the need for a clear legal pathway to tokenize assets like stocks and ETFs.

Later, in a podcast interview, Tenev highlighted a key pain point: international investors face significant barriers when trying to buy U.S. stocks. “It’s extremely difficult if you're outside the U.S.,” he said—pointing directly at the demand for borderless, digital-first investing tools.

These statements weren’t just commentary—they were strategic signposts.

Regulatory groundwork has followed. Last month, Robinhood secured a brokerage license in Lithuania, enabling it to offer stock trading across the EU. Additionally, its acquisition of Bitstamp—a crypto exchange with MiFID-compliant Multilateral Trading Facility (MTF) status—gives Robinhood the regulatory toolkit needed to launch compliant tokenized products in Europe.

With licenses secured and infrastructure in place, blockchain integration becomes the next logical step.

Why Arbitrum Makes Sense

Several factors make Arbitrum a compelling choice for Robinhood’s ambitions:

1. EVM Compatibility

Arbitrum’s full EVM equivalence means Robinhood can reuse existing smart contracts and developer tools without costly rewrites—a major advantage for scaling quickly.

2. Optimistic Rollup Efficiency

Compared to ZK-based alternatives, Arbitrum offers faster development cycles and lower costs—ideal for a high-volume trading environment.

3. Custom L2 Flexibility via Arbitrum Chains

Unlike building on Base (Coinbase’s L2), which would create competitive tension, using Arbitrum allows Robinhood to build a private, purpose-built chain while still benefiting from Ethereum’s security and decentralization.

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4. Existing Partnership History

Robinhood and Arbitrum aren’t strangers. At ETHDenver 2024, they partnered to streamline access to Arbitrum through Robinhood Wallet—proving prior collaboration and technical alignment.

Mimicking Base—or Forging a New Path?

Some observers see Robinhood’s potential L2 move as imitation of Coinbase’s Base strategy. After all, Base succeeded by fostering an open ecosystem where third-party dApps could thrive.

But Robinhood may take a different route—one that leverages its core strength: a massive base of active retail investors.

Instead of opening its L2 to external developers, Robinhood might opt for a closed-loop model, migrating its existing trading tools, portfolios, and users entirely onto-chain. Think:

This “closed ecosystem” approach could offer tighter regulatory control and smoother UX—but at the cost of limiting innovation from outside builders.

As noted by analytics firm Token Terminal, Robinhood’s best path may not be copying Base—but differentiating from it by focusing on seamless integration of real-world assets with crypto-native infrastructure.

Implications for Ethereum’s Ecosystem

While custom L2s offer business flexibility, they also raise concerns about Ethereum fragmentation. With dozens of independent rollups launching—each with isolated liquidity and governance—the risk of a splintered ecosystem grows.

Will Ethereum L1 become merely a settlement layer? Possibly. But projects like Arbitrum Chains show that modularity doesn’t have to mean disconnection—interoperability tools and shared security models can still bind these chains together.

Ultimately, Robinhood’s move—if confirmed—could accelerate adoption of real-world asset (RWA) tokenization while pushing Ethereum toward greater scalability and specialization.

Frequently Asked Questions

Q: What does "tokenized U.S. stocks" mean?
A: It refers to digital tokens representing ownership in real U.S.-listed companies (like Apple or Tesla), issued on a blockchain. These tokens enable faster settlement, fractional shares, and cross-border trading.

Q: Is Robinhood definitely launching its own L2?
A: Not yet confirmed. Reports suggest development is underway using Arbitrum Chains technology, but official details are expected at EthCC.

Q: Can non-U.S. users currently trade U.S. stocks via Robinhood?
A: Not directly. However, with its new EU brokerage license and potential blockchain platform, international access could soon become a reality.

Q: How is this different from buying stocks on traditional platforms?
A: On-chain trading enables near-instant settlement (T+0 vs T+2), 24/7 markets, lower fees, and programmable finance features like automated dividends or staking.

Q: Will this require users to hold crypto?
A: Likely yes—but seamlessly integrated. Users may deposit fiat, which gets converted into stablecoins or synthetic assets behind the scenes for on-chain execution.

Q: Could this attract regulatory scrutiny?
A: Absolutely. Securities laws vary globally, but Robinhood’s EU licensing and use of regulated entities like Bitstamp help mitigate compliance risks.

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Final Thoughts

Robinhood entering the L2 space would be more than just another blockchain headline—it could signal a turning point for mainstream financial asset digitization. By combining regulatory readiness, user scale, and cutting-edge infrastructure, Robinhood has the potential to redefine how people around the world interact with U.S. equities.

Whether it chooses an open or closed ecosystem model, one thing is clear: the convergence of traditional finance and decentralized technology is accelerating—and retail investors stand to benefit most.

As we await official announcements from EthCC, one message resonates: the future of investing isn’t just digital—it’s on-chain.

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