• The principle aim behind the launch is to allow 24/7 buying and selling, self-denomination, cross-chain interoperability and seamless funds with out counting on third-party brokers.
• Two days in the past, Robinhood launched a token for European clients by Arbitrum, which tokenizes over 200 US shares and ETFs, permitting them to make use of tradable charges, and said that they’ll dwell 24 hours a day, 5 days per week.
• Robinhood shares surged from about 12% to 13%, reaching report highs

Robinhood CEO Vlad Tenev has introduced that the corporate is constructing its personal Ethereum Layer-2 on Arbitrum. The brand new “Robinhood chain” will bolster the corporate’s formidable push tokenized shares, ETFs and even non-public firm shares.

The principle aim behind the launch is to allow 24/7 buying and selling, self-reliance, cross-chain interoperability and seamless funds with out counting on third-party brokers.

Based mostly on Arbitrum, inside the Ethereum ecosystem, Robinhood goals to keep away from competing token requirements with liquidity fragmentation in Solana, the place the corporate competes.

Others like Kraken and Bybit additionally provide inventory tokenization, however Robinhood distinguishes itself by creating its personal Layer 2 blockchain.

Robinhood Cryptographic Extension

Two days in the past, Robinhood launched tokens by way of Arbitrum that permit greater than 200 US shares and ETFs to European clients to tokenize and use tradable charges, saying it could actually dwell 24 hours a day, 5 days per week. Among the many choices are the big trio: Nvidia (NVDA.O), Apple (AAPL.O), and Microsoft (MSFT.O).

Moreover, the plan would additionally present tokens linked to shares from non-public corporations akin to Openai and SpaceX.

Moreover, the corporate is introducing everlasting, encrypted futures to EU clients with as much as 3 times the leverage, backed by MICA (Crypto-Property Regulation Market) licensing. The US has plans to launch tokenized shares and perpetuals, however at this level it depends on the readability of ongoing rules.

Pushed by all of those bulletins and crypto-integrated improvements, Robinhood shares rose by round 12% to 13%, reaching report highs.

Why arbitrum?

Constructed by Offchain Labs, Arbitrum is an Ethereum Layer 2 scaling answer that makes use of optimistic rollups. That’s, transactions deal with off-chain (less expensive and quicker).

One of many explanation why Robinhood probably selected Arbitrum (as a substitute of Solana, for instance) is that Arbitrum is 100% Ethereum Digital Machine (EVM) appropriate. Consequently, all good contracts that work with Ethereum will work with Arbitrum with out modification. Plus, it is simpler to combine with the Ethereum Defi protocol and liquidity pool.

Arbitrum will then inherit Ethereum’s safety assure. That is helpful for corporations like Robinhood, which require regulatory ensures relating to the administration of property and transactional finality.

There are different causes, akin to the truth that Robinhood’s Crypto consumer base is primarily used on Ethereum property or that Arbitrum is the biggest layer 2 in its locked whole worth (TVL).

Regardless of the purpose, these current bulletins and right this moment’s launches have led Robinhood to a significant transformation right into a monetary platform that totally embraces crypto and blockchain know-how.