Robinhood has chosen to develop on an Ethereum Layer 2 network instead of launching a new Layer 1 blockchain, citing concerns over decentralization and liquidity. Johann Kerbrat, Robinhood Crypto General Manager, emphasized that Ethereum's robust infrastructure and interconnected liquidity across EVM ecosystems were pivotal in their decision. The company aims to leverage Ethereum's established network to focus on application development rather than core network maintenance. Kerbrat highlighted that several non-Ethereum Layer 1 networks face centralization issues, with incidents of validators restarting systems simultaneously during disruptions. This contrasts with Ethereum's decentralized structure, which provides a reliable foundation for developers. Additionally, Robinhood's strategy prioritizes accessibility and integration with existing financial systems, benefiting from Ethereum's extensive liquidity connections. The decision reflects Robinhood's goal to support open financial systems directly on-chain, rather than isolated networks.