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Market News

Robinhood Launches Ethereum L2 as Q4 Report Tells a Different Story

Robinhood launched its Arbitrum-based Layer 2 testnet as it reported Q4 revenue of $1.28 billion, with crypto revenue down 38% and net income at $605 million.

Written By:
Dishita Malvania

Last updated: February 11, 2026 11:50 AM
Published February 11, 2026 10:35 AM
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Last updated: February 11, 2026 11:50 AM
Published February 11, 2026 10:35 AM
Robinhood Launches Ethereum L2 as Q4 Report Tells a Different Story

Key Highlights

  • Robinhood launched the public testnet for its Arbitrum-based Ethereum Layer 2, with Chainlink selected as the oracle provider.
  • The company reported Q4 2025 revenue of $1.28 billion, missing estimates, while crypto revenue declined 38% year-over-year.
  • Net income reached $605 million during the quarter, as operating expenses increased 38% compared with the previous year.

Robinhood has launched the public testnet for Robinhood Chain, an Ethereum Layer 2 network built on Arbitrum, as the company moves forward with plans to expand into tokenized real-world assets and onchain financial infrastructure.

The testnet is now open to developers, allowing early-stage building and infrastructure integration ahead of a planned mainnet release later this year.

Robinhood Chain is positioned as a financial-focused Layer 2 network designed to support tokenized real-world assets, digital assets, and decentralized financial applications. 

The company said the network was developed with an emphasis on reliability, security, and regulatory considerations.

Chainlink has been selected as the oracle platform for Robinhood Chain. In addition, infrastructure providers, including Alchemy, Allium, LayerZero, and TRM, are integrating with the network during the early testnet phase.

Johann Kerbrat, SVP and GM of Crypto and International at Robinhood, said: “The testnet for Robinhood Chain lays the groundwork for an ecosystem that will define the future of tokenized real-world assets and enable builders to tap into DeFi liquidity within the Ethereum ecosystem. We look forward to building alongside our infrastructure partners as we work to bring financial services onchain.”

What the Public Testnet Includes

With the public testnet now live, developers can access network entry points to the Robinhood Chain environment and begin deploying applications using standard Ethereum development tools. The network is built using Arbitrum technology, making it compatible with existing Ethereum tooling and infrastructure.

Developer documentation has been made available through Robinhood’s official documentation portal. The company said the current phase is intended to support experimentation, stress testing, and issue identification before the mainnet launch.

Several infrastructure and data providers are already working with the network during its early phase. Chainlink will handle the oracle infrastructure for the network, supplying the outside market data needed for tokenized assets and DeFi products to operate. 

LayerZero is integrating cross-chain communication tools, while TRM will provide transaction monitoring and compliance support. Developer infrastructure and analytics are being supported by Alchemy and Allium as part of the early rollout.

Q4 2025 Financial Results

Robinhood’s testnet launch comes alongside its fourth-quarter 2025 earnings report.

The company reported $1.28 billion in revenue for the quarter, below analyst estimates of $1.35 billion. Revenue was still up 27% compared with the same period last year.

Crypto revenue fell to $221 million, down 38% year over year.

Adjusted EBITDA came in at $761 million, missing expectations of $833 million but rising 24% from a year earlier. Transaction-based revenue reached $776 million, an increase of 15% year over year.

Robinhood reported net income of $605 million for the quarter.

Operating expenses climbed to $633 million, up 38% from last year. On an adjusted basis, including stock-based compensation, operating expenses were $597 million, up 18% year over year.

The company ended the quarter with $4.3 billion in cash and cash equivalents.

The earnings results arrive as Robinhood moves deeper into blockchain infrastructure with the launch of its Layer 2 testnet.

Focus on Tokenized Assets and Financial Applications

Robinhood Chain is intended to support products such as tokenized assets, lending services, and perpetual futures markets. The network will also include cross-chain transfers and self-custody features, allowing users to move assets and retain direct control over them.

Further updates are expected in the coming months. Robinhood said the testnet will introduce dedicated test assets, including Stock Tokens, which developers can use for integration and product testing before the mainnet launch. Developers will also be able to test directly with Robinhood Wallet as part of the ecosystem integration process.

Steven Goldfeder, Co-Founder and CEO of Offchain Labs, said: “With Arbitrum’s developer-friendly technology, Robinhood Chain is well-positioned to help the industry deliver the next chapter of tokenization and permissionless financial services. Working alongside the Robinhood team, we are excited to help build the next stage of finance.”

Developer Incentives and Ecosystem Expansion

Robinhood has committed $1 million toward the 2026 Arbitrum Open House program to support developer activity related to Robinhood Chain. The company will also participate in four online Buildathons in New York City, Dubai, London, and Singapore, as well as two in-person Founder Houses in New York City and London.

The public testnet is the first time Robinhood Chain is available for live use. While the company has not shared an exact date for the mainnet launch, it said the full rollout is planned for later this year.

Now that the testnet is open, developers and institutional partners can start building, testing, and assessing the network’s infrastructure as Robinhood deepens its involvement in blockchain-based financial services.

Also Read: LayerZero’s L1 Blockchain Launch Leaks on YouTube, Causes 30% Token Slump

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dishita Malvania - Senior crypto journalist at The Crypto Times
By Dishita Malvania
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Dishita Malvania is a Crypto Journalist with 3 years of experience covering the evolving landscape of blockchain, Web3, AI, finance, and B2B tech. With a background in Computer Science and Digital Media, she blends technical knowledge with sharp editorial insight. Dishita reports on key developments in the crypto world—including Litecoin, WazirX, Solana, Cardano, and broader blockchain trends—alongside interviews with notable figures in the space. Her work has been referenced by top digital media outlets like Entrepreneur.com, The Independent, The Verge, and Metro.co, especially on trending topics like Elon Musk, memecoins, Trump, and notable rug pulls.

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