Robinhood Stock Jumps 8% as HOOD Chain Mainnet Goes Live

Quick overview

Robinhood stock rose nearly 8% following the news the trading platform went live with its chain, Robinhood Chain, from the testnet environment to a public mainnet. The Arbitrum Layer 2 chain is specifically made for tokenized real-world assets (RWAs). It is “AI-native,” Robinhood said, and tailored for financial products, representing the latest expansion of its interest in crypto, decentralized finance (DeFi), and tokenized securities.

Tokenized stocks went live through Robinhood’s wallet app in more than 120 countries outside the U.S. CEO Vlad Tenev has previously called tokenized stocks “inevitable,” pointing to the potential for around-the-clock trading and reduced trading halts versus the regular market. The launch builds on Robinhood’s tokenization story, but it also introduces some potential regulatory and technological pitfalls.

Crypto Revenue Still a Drag

The surge came even as the company reported lackluster crypto-related earnings for the quarter. In first-quarter (April) earnings, crypto transaction revenue dropped 47% compared to a year ago at $134 million from $252 million. The quarter’s transaction revenue missed estimates because of lower take rates in both options and crypto. For years, crypto has been a critical profit center for Robinhood. The company said it was pivoting toward infrastructure, recurring revenue, tokenized assets, and wallet products instead.

• Crypto transaction revenue: $134 million, down 47% Year-over-Year
• Tokenized stocks available in 120+ countries outside the U.S.
• Robinhood Earn provides ~7% Annual Percentage Yield on stablecoin USDG by lending through a self-custodial wallet

A highly competitive and fraught L2

Robinhood Chain comes to market at a time when the Layer 2 space is crowded (Coinbase’s Base network, for instance, has suffered outages in the past). Stock Tokens are not shares themselves; rather, they represent a claim on the stock. This could invite additional regulatory attention into how stocks are custodyed and what rights they offer. The move follows a 10% workforce reduction earlier in the year. Investors await second-quarter earnings on July 29 to see if the public chain can turn the tide against recent crypto weakness.

Broader Trending Stocks Context (July 2)

HOOD joins other movers in a mixed market: AI/tech infrastructure (e.g., Meta up on cloud/AI compute plans, PLTR, NVDA-related plays) and earnings/volatility names remain active. Memory/semiconductor names saw some profit-taking, while tokenized/RWA and blockchain expansions gain attention.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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