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The basics

Robinhood Chain, explained

Robinhood Chain is an Ethereum Layer 2 using Arbitrum technology. It supports Stock Tokens and financial applications, uses ETH for gas and relies on a Robinhood-operated sequencer.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Helena from HoodL2.com. So, what is it for? Robinhood Chain is a blockchain for financial assets, including Stock Tokens. Separate wallets and applications can use the same network. Your brokerage account stays separate. Learn more on HoodL2.

The basics

What changes when stocks become tokens?

Robinhood Chain is an Ethereum Layer 2 using Arbitrum technology. It supports Stock Tokens and financial applications, uses ETH for gas and relies on a Robinhood-operated sequencer.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Alina from HoodL2.com. Why put stocks onchain? Putting stock exposure on Robinhood Chain makes it usable across compatible wallets and applications. A token can be transferred or used by software, instead of staying inside one app. Learn more on HoodL2.

Ownership

What a Stock Token represents

Robinhood Stock Tokens are debt securities issued by Robinhood Assets (Jersey) Limited. They provide stock or ETF exposure, with reference prices and corporate-action adjustments available onchain.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Barbara from HoodL2.com. What's behind the token? A Robinhood Stock Token is a debt security linked to a stock or ETF. It gives economic exposure to that asset, with rights set by the issuer's terms. Learn more on HoodL2.

Ownership

Stock Tokens and shareholder rights

Robinhood Stock Tokens are debt securities issued by Robinhood Assets (Jersey) Limited. They provide stock or ETF exposure, with reference prices and corporate-action adjustments available onchain.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Helena from HoodL2.com. Does that make you a shareholder? Holding a Robinhood Stock Token doesn't make you a shareholder in the underlying company. Your rights depend on the legal terms of Robinhood Assets, Jersey Limited, which issues the token. Learn more on HoodL2.

Ownership

Holding tokens in your wallet

Robinhood Stock Tokens are debt securities issued by Robinhood Assets (Jersey) Limited. They provide stock or ETF exposure, with reference prices and corporate-action adjustments available onchain.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Alina from HoodL2.com. Does it stay inside Robinhood? Robinhood Stock Tokens can be held in your own compatible wallet and transferred onchain. Keeping the token yourself doesn't remove the issuer's terms or restrictions on who can acquire it. Learn more on HoodL2.

Corporate actions

Dividends and your token balance

The multiplier tracks share-equivalent exposure while the raw token count can remain unchanged. Dividends and stock splits affect that relationship in different ways.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Barbara from HoodL2.com. How are dividends handled? Robinhood Stock Tokens reinvest dividends through a multiplier. Each token then represents more share exposure. The number of tokens in your wallet can stay the same. Learn more on HoodL2.

Corporate actions

When a stock splits

The multiplier tracks share-equivalent exposure while the raw token count can remain unchanged. Dividends and stock splits affect that relationship in different ways.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Helena from HoodL2.com. What changes in a split? After a stock split, a Robinhood Stock Token can represent more shares through its multiplier. Your raw token count stays unchanged. The split itself doesn't create extra value. Learn more on HoodL2.

Prices & trading

Access around the clock

Onchain access, a reference price and a tradable quote describe different things. A Stock Token can also represent more than one share-equivalent unit.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Alina from HoodL2.com. Can you trade all weekend? Robinhood Stock Tokens are accessible onchain around the clock. Trading still depends on the venue and available liquidity. Their stock price feeds update twenty-four hours a day, five days a week. Learn more on HoodL2.

Prices & trading

Token price vs. share price

Onchain access, a reference price and a tradable quote describe different things. A Stock Token can also represent more than one share-equivalent unit.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Barbara from HoodL2.com. Why don't the prices match? Robinhood Stock Tokens reflect reinvested dividends as well as stock price changes. Their reference price includes that adjustment, so one token's price can differ from the quoted share price. Learn more on HoodL2.

Applications

Could you borrow against Stock Tokens?

Developers can use existing Stock Tokens in financial applications. Borrowing, baskets and trading interfaces each need their own implementation and terms.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Helena from HoodL2.com. Could you borrow without selling? Developers can build Robinhood Chain lending markets that accept Stock Tokens as collateral. A supported market could let you borrow without selling, but a fall in token value can trigger liquidation. Learn more on HoodL2.

Applications

Building a basket of tokens

Developers can use existing Stock Tokens in financial applications. Borrowing, baskets and trading interfaces each need their own implementation and terms.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Alina from HoodL2.com. What could a basket look like? An app on Robinhood Chain could combine several Stock Tokens into one basket. For example, it could group tokens linked to technology companies. The basket's value would depend on its holdings. Learn more on HoodL2.

Applications

Can other apps use Robinhood Stock Tokens?

Developers can use existing Stock Tokens in financial applications. Borrowing, baskets and trading interfaces each need their own implementation and terms.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Barbara from HoodL2.com. Who can build the apps? Robinhood Stock Tokens can be used by apps built outside Robinhood. Developers can add trading or portfolio tools around the same tokens, so the experience isn't limited to one app. Learn more on HoodL2.

Chain design

Can paying more jump the trading queue?

Robinhood Chain orders transactions by arrival at its sequencer. Higher priority fees do not buy an earlier place in the queue, while network latency can still affect arrival time.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Helena from HoodL2.com. Can someone pay to cut in? On Robinhood Chain, transactions are ordered by arrival at its ordering service. Paying a higher priority fee won't move yours ahead. A faster connection can still affect when it arrives. Learn more on HoodL2.

Chain design

Who controls Robinhood Chain?

Robinhood Chain orders transactions by arrival at its sequencer. Higher priority fees do not buy an earlier place in the queue, while network latency can still affect arrival time.

Read the guide 2 min read · Sources included
Video transcript

Hi, I'm Alina from HoodL2.com. Who gets to change the rules? Robinhood Chain has an eight-member Security Council. Robinhood holds two seats, and other institutions hold six. Changes need multiple approvals, so Robinhood can't approve a protocol upgrade by itself. Learn more on HoodL2.

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The details behind the videos.

Full explanations, primary sources, and issuer references.

Robinhood Chain & Stock Tokens

Issuer comparisons & references