Robinhood has unveiled the public testnet of its own Ethereum based layer 2 blockchain, marking a significant expansion of the brokerage platform’s push into crypto infrastructure and tokenized assets. The network, called Robinhood Chain, is built on Arbitrum and is designed to support tokenized real world assets including equities and exchange traded funds.
The testnet launch follows six months of private development and signals Robinhood’s intention to move more trading activity onchain. Developers can now begin building publicly on the network ahead of a planned mainnet release later this year. The company aims to enable round the clock trading, asset self custody through its wallet and interoperability with decentralized finance applications on Ethereum.
Robinhood’s move comes at a time when the Ethereum ecosystem is reassessing the role of layer 2 networks. Improvements at the Ethereum base layer have reduced transaction costs, leading some developers to question whether rollups are still primarily needed for scaling. Robinhood executives indicated their strategy is less about scaling Ethereum itself and more about creating specialized financial infrastructure optimized for tokenized markets.
Meanwhile, institutional momentum around blockchain development continues to build. LayerZero Labs announced Zero, a new blockchain aimed at supporting high throughput financial market activity. The project received backing from Citadel Securities, which invested in LayerZero’s native token and is evaluating how the network’s architecture could support trading and post trade workflows. ARK Invest also disclosed an investment in both the company’s equity and token.
Zero is designed with a heterogeneous architecture that separates transaction execution from verification using zero knowledge proofs. The company claims the system can scale to millions of transactions per second across multiple zones, positioning it as infrastructure for institutional grade settlement and market operations.
In parallel, MegaETH launched its public mainnet, entering the ongoing debate over Ethereum’s long term scaling model. The project aims to deliver near instant transaction performance and significantly higher throughput compared with Ethereum’s current capacity. MegaETH has attracted substantial funding and high profile backers, reflecting continued investor appetite for performance focused blockchain solutions.
At the same time, Ethereum Name Service decided to abandon plans for its own dedicated rollup, opting instead to deploy its next major upgrade directly on the Ethereum mainnet. Developers cited lower gas costs and evolving base layer improvements as reasons for the shift.
Beyond protocol development, regulatory and corporate developments remain active. Kraken recently adjusted its executive leadership as it prepares for a public listing, while Blockchain.com secured regulatory approval in the United Kingdom after previously withdrawing its application. In the United States, debate continues over proposed crypto legislation, including market structure reforms and discussions around a potential strategic bitcoin reserve.
Taken together, these developments illustrate a shifting landscape where consumer platforms, trading firms and infrastructure providers are all accelerating blockchain initiatives. As tokenization and institutional adoption expand, competition among layer 2 networks and specialized chains is intensifying, with firms positioning themselves for the next phase of digital asset market growth.
