Robinhood is developing an Ethereum Layer-2 network on Arbitrum to leverage Ethereum's security and liquidity, according to Johann Kerbrat, head of Robinhood's crypto division. The decision to build on Arbitrum, rather than creating a standalone Layer-1, allows Robinhood to focus on core offerings like tokenized stocks while benefiting from the Ethereum ecosystem. Currently in the private testnet phase, Robinhood's Layer-2 solution has already seen the deployment of tokenized stocks on Arbitrum One. The number of tokenized stocks available on Robinhood has grown significantly, from around 200 to over 2,000, with plans for seamless migration to the new chain upon its launch.