Robinhood has launched a developer's version of its custom-built blockchain, Robinhood Chain, signaling a significant push into crypto-based financial services, including tokenized stocks, according to Fortune. The announcement, made at the Consensus event in Hong Kong, marks a key step in the company's expansion into the digital asset space.
The Robinhood Chain is currently in its testnet phase, meaning it is publicly visible but restricted to a limited number of partners and participants who can test its infrastructure and introduce experimental features, as reported by Fortune. The mainnet version, which will be used to process customer transactions, is expected to go live in the coming months. This move comes as the company aims to compete with other major players in the crypto space, including Alchemy, LayerZero, and Chainlink.
Simultaneously, the crypto industry is grappling with the challenge of scaling blockchain technology to handle the high volume of transactions generated by traditional finance entities, such as the New York Stock Exchange, according to Fortune. Concerns about the security of sensitive client data on public blockchains like Ethereum and Solana have prompted the development of new solutions. One such solution is Zero, a new blockchain backed by Citadel and Cathie Wood, designed to meet the needs of Wall Street.
The launch of Robinhood Chain and the development of Zero highlight the ongoing competition and innovation in both the crypto and traditional finance sectors. These developments are part of a broader trend of financial institutions embracing blockchain technology.
The launch of Robinhood Chain was also mentioned in Variety, which noted the event alongside other news, including developments in entertainment and discussions on AI ethics. Fortune also highlighted the launch in the context of ongoing competition in the AI and crypto spaces.
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