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Ethereum’s Strategic Expansion: Robinhood’s Layer-2 Move on Arbitrum

Ethereum’s Strategic Expansion: Robinhood’s Layer-2 Move on Arbitrum

Published:
2026-01-12 07:43:13
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In a significant development for the cryptocurrency ecosystem, Robinhood's crypto division has announced its commitment to building a layer-2 network on Arbitrum, leveraging Ethereum's robust infrastructure rather than developing an independent blockchain. This strategic decision, revealed by Johann Kerbrat, Robinhood's crypto chief, highlights the firm's focus on enhancing transaction speed, improving integration capabilities, and capitalizing on Ethereum's established security and liquidity. By opting for Arbitrum, Robinhood aims to inherit Ethereum's decentralized security framework while facilitating the tokenization of stocks, potentially bridging traditional finance with decentralized finance (DeFi). This move underscores Ethereum's growing dominance as a foundational layer for innovative financial solutions, as major players like Robinhood recognize the value of its network effects and technological maturity. The integration is expected to accelerate the adoption of tokenized assets, offering users faster and cheaper transactions without compromising security. As of 2026-01-12, this development signals a bullish trend for Ethereum, reinforcing its role as a cornerstone of the digital asset landscape and driving Optimism about its long-term utility and value appreciation in the finance sector.

Robinhood Commits to Ethereum Layer-2 on Arbitrum for Tokenized Stocks

Robinhood's crypto division has opted to build its layer-2 network on Arbitrum, leveraging Ethereum's existing infrastructure rather than developing a standalone blockchain. The MOVE underscores a strategic focus on speed, integration, and capitalizing on Ethereum's security and liquidity. Johann Kerbrat, Robinhood's crypto chief, emphasized that this approach allows the firm to inherit Ethereum's decentralized security while maintaining compatibility with the broader EVM ecosystem.

The decision to forgo a proprietary layer-1 network surprised industry observers. By building on Arbitrum One—the most active Ethereum rollup—Robinhood avoids the technical overhead of base-layer maintenance. Resources can instead prioritize customer-facing products like tokenized stocks, which are already live on the network. Ethereum's settlement layer handles the heavy lifting, accelerating Robinhood's product rollout.

Tokenized assets represent a growing frontier in crypto-finance integration. Robinhood's architecture positions it to capitalize on this trend while sidestepping the pitfalls of reinventing blockchain fundamentals. The brokerage's embrace of ethereum scaling solutions signals institutional recognition of L2s as the path forward for mass adoption.

Ethereum (ETH) Eyes $4,400 Breakout as Bitmine Staking Sparks Bullish Momentum

Bitmine, the investment service led by crypto strategist Tom Lee, has deposited 86,400 ETH worth $266.3 million into the Ethereum network. This move underscores Bitmine's growing influence and confidence in Ethereum's long-term potential. The firm's total staked ETH now exceeds 1,080,512 tokens, valued at $3.33 billion, tightening market supply and reinforcing institutional bullishness.

Ethereum's price action remains confined within a symmetrical triangle pattern, signaling market indecision. Analysts note the absence of a clear trend, with a breakout expected to dictate short-term momentum. The $4,400 level looms as a key resistance target should bullish pressure prevail.

Ethereum Foundation Elevates Zero-Knowledge Proofs as Core Scaling Strategy

Ethereum's evolution is accelerating toward a future where zero-knowledge cryptography integrates directly into its foundational architecture. Hsiao-Wei Wang, co-executive director of the Ethereum Foundation, confirms the technology has shifted from auxiliary to central in ETH's roadmap. "Recent breakthroughs have transformed theoretical research into deployable solutions," Wang noted, marking a pivotal transition in the network's development.

The foundation is balancing immediate upgrades—execution improvements and blob space expansion for LAYER 2—with long-term cryptographic innovation. Zero-knowledge proofs now emerge as the leading candidate to scale Ethereum without compromising decentralization. Once constrained by technical complexity, these proofs have achieved operational feasibility through two years of accelerated progress.

Zero-knowledge rollups, previously a distant goal, are now prioritized for near-term implementation. This strategic pivot reflects Ethereum's commitment to scalable verification methods that align with its Core principles. The network's design philosophy increasingly treats cryptographic techniques not as add-ons but as intrinsic components of its next evolution.

BitMine Surpasses One Million ETH Staked, Cementing Ethereum's Institutional Appeal

BitMine Immersion Technologies has crossed a pivotal threshold in its Ethereum strategy, now staking over one million ETH. The Tom Lee-led firm holds a total treasury exceeding four million ETH—a position that places it among the world's largest institutional holders of the asset.

Annual yields hover near 3% according to crypto analysts, but the strategic implications run deeper. BitMine's pivot from bitcoin mining to Ethereum accumulation reflects a broader institutional shift. "We're building a bridge between blockchain and traditional finance," Lee asserts, framing staking as a mechanism to reduce market liquidity and amplify Ethereum's scarcity.

The move underscores Ethereum's rising prominence in institutional portfolios, where yield generation and network participation now rival speculative trading as primary value drivers. Market observers note that staking volumes of this magnitude create structural supply constraints—a bullish signal for ETH's long-term valuation.

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