BlockBeats news: On January 11, Johann Kerbrat, head of Robinhood's crypto business, stated that the company's decision to build on Arbitrum, an Ethereum Layer-2 network, rather than launching a standalone Layer-1, is primarily driven by the desire to directly benefit from Ethereum's security, decentralization, and the liquidity of the EVM ecosystem. This allows the company to focus on core products such as tokenized stocks.
Robinhood's in-house Layer 2 solution is still in the private testnet phase. Tokenized stocks have been initially deployed on Arbitrum One and can be seamlessly migrated to the new chain when it launches. To date, the number of tokenized stocks on Robinhood has expanded from an initial approximately 200 to over 2,000. (CoinDesk)