In Brief: Robinhood Poised to Launch Ethereum Layer-2 Trading Network

Robinhood Seeks Expansion Beyond Cryptocurrency with Ethereum Layer-2

Robinhood is spearheading its largest crypto-related initiative yet by developing an Ethereum layer-2 scaling network for trading tokenized stocks, similar to existing offerings on platforms like Solana.

Contents

In Brief: Robinhood Poised to Launch Ethereum Layer-2 Trading Network Robinhood Seeks Expansion Beyond Cryptocurrency with Ethereum Layer-2 Views from Industry Leaders Robinhood’s Approach: Integration and Compatibility Kraken’s Strategy Shifts Towards Solana-Based Tokenization Broader Implications

Views from Industry Leaders

“I hate the idea of having a Tesla-Kraken token and a Tesla-Robinhood token. Instead of actually moving forward and creating a better financial system, we’re splitting [up] liquidity,” said Johann Kerbrat, Robinhood’s Crypto General Manager.

Robinhood’s Approach: Integration and Compatibility

Robinhood’s network, based on Arbitrum’s design, aims to connect within the broader Ethereum ecosystem. Kerbrat emphasized the goal of maximizing participation and compatibility with other players once regulations are clearer, stating:

Launch tokenized stocks and ETFs first in the EU
Expand geographically as regulatory clarity is achieved
Create a system compatible with other entities in the cryptosphere

Kraken’s Strategy Shifts Towards Solana-Based Tokenization

Despite launching its own Ethereum layer-2 network (Ink) last year, which Kerbrat noted has seen limited use, Kraken is actively expanding its tokenized stock trading via xStocks on the Solana blockchain. Kraken’s spokesperson stated:

Expanded xStocks across multiple blockchains
Aims to establish xStocks as the global standard for tokenized equities
Works with a broad network of partners for blockchain expansion

Kraken joined the xStocks Alliance to prevent liquidity fragmentation across different chains, reconciling its Solana-based xStocks initiative with the continued development of Ink.

Broader Implications

The contrasting approaches from major crypto platforms underscore the ongoing fragmentation in the tokenization space. While Robinhood focuses on seamless integration and interoperability within the Ethereum ecosystem, platforms like Kraken prioritize establishing and expanding a standardized, multi-chain tokenized asset framework.