Robinhood Announces Layer 2 Blockchain On Arbitrum, HOOD Stock Jumps 10%
Highlights
- Robinhood has confirmed it is developing an Arbitrum-based L2 blockchain.
- HOOD stock is up over 10% while Arbitrum price has surged 10% following the announcement.
- Robinhood has unveiled a raft of products for consumers, eyeing an increased market share.
Rumours of a Robinhood partnership with Arbitrum are confirmed, with the US-based financial services firm leaning on the blockchain to announce its own layer 2 (L2) solution. The buzz from the announcement has sent HOOD stock rallying by over 10% in the last day, while the Arbitrum price has gained double-digit percentages.
Robinhood Teams Up With Arbitrum, Builds L2 Blockchain
Robinhood has disclosed that it is building a layer 2 blockchain on Arbitrum, optimized for tokenized real-world assets. According to an official announcement, Robinhood will deploy the incoming Arbitrum-based L2 blockchain for tokenized stock issuances.
The company announced the development at the “Robinhood Presents: To Catch A Token” event in France, unveiling a raft of products. Per the statement, Robinhood has launched tokenized US stock and ETF tokens, allowing users in Europe to access up to 200 US securities.
For starters, Robinhood will issue stock tokens on Arbitrum until its blockchain development is complete. Afterwards, all stock and ETF tokens will be facilitated on the new blockchain based on Arbitrum, offering 24/7 trading and self-custody.
The blockchain functionalities will enable Robinhood users to receive payment dividends on the app. Early in the day, the Arbitrum price jumped by 30% following speculation of an imminent partnership.
A Wave Of New Products
At the event, Robinhood unfurled a raft of offerings for consumers to follow its tokenized US stocks and ETF products. EU users will have access to crypto perpetual features with up to 3X leverage upon launch. Robinhood says it is partnering with Bitstamp’s perpetual futures exchange to handle orders.
Furthermore, Robinhood has announced crypto staking for eligible US customers, starting with Ethereum and Solana. Users in the EU can also access the feature, building on its previous support for CME Group’s Micro XRP and Solana futures.
“Our latest offerings lay the groundwork for crypto to become the backbone of the global financial system,” said Robinhood CEO Vlad Tenev.
The expanded product suite includes a 1% boost on crypto deposits and crypto credit card rewards. The company has announced smart exchange routing, tax lots, and advanced charts for consumers. The buzz from the product launches has sent HOOD stock trading at $91.92, up 10% over the last day.
Robinhood is one step closer to becoming a financial super application, but it still faces competition from X’s incoming in-app trading feature.
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