Arbitrum preference of Robinhood over Solana explained
In the rapidly evolving world of cryptocurrencies, two major players, Kraken and Robinhood, are making significant strides in the realm of tokenized stocks. As of mid-2025, Kraken's xStocks platform offers over 60 U.S. stock and ETF tokens, including big names like Tesla and Apple, on the Solana blockchain. These xStocks are backed 1:1 by the actual underlying equities and are issued primarily as SPL tokens, enabling 24/5 trading with weekend trading under development.
Kraken's xStocks are currently deployed on Solana and its own Ethereum layer-2 network, Ink. However, Ink has seen minimal usage so far, with Kraken working with partners to possibly extend xStocks to other blockchains. In contrast, Robinhood has announced a focused strategy to develop an Ethereum layer-2 scaling network for tokenized assets, specifically choosing to build on Arbitrum.
Robinhood's motivation is to reduce liquidity fragmentation caused by multiple tokenized stock versions across different blockchains and to leverage Ethereum’s broad ecosystem for better interoperability and participation. They aim to launch tokenized stocks and ETFs initially in the European Union, expanding globally upon regulatory clarity. Unlike Kraken, which supports Solana and Ink, Robinhood centers its development on Ethereum’s ecosystem to maximize synergy and avoid a splintered market.
A key advantage of Arbitrum is its ability to allow developers to use specific libraries or components of their application while taking benefits from the battle-hardened EVM code. Moreover, languages like c++ may appeal more to game developers or traditional finance firms in the context of Arbitrum Stylus, which allows developers to write smart contracts in various languages.
Robinhood CEO Vlad Tenev stated that the firm is working with regulators to bring the entire Robinhood ecosystem on-chain. Meanwhile, Kraken is pushing forward with tokenized stock trading on Solana and expanding xStocks to additional blockchains, including Ethereum.
In summary, Kraken leads with a multi-chain approach, leveraging Solana and its own Ink network as part of xStocks’ expansion. Robinhood, on the other hand, prioritizes Ethereum Layer-2 scaling via Arbitrum to unify liquidity and ecosystem participation, emphasizing regulatory compliance and gradual rollout starting in the EU.
[1] James Rubin (ed.), "Kraken's xStocks: A Comprehensive Guide", Kraken Blog, [date] [2] Robinhood, "Robinhood Announces Ethereum Layer-2 Scaling Network for Tokenized Assets", Robinhood Press Release, [date] [3] Kraken, "Kraken Joins xStocks Alliance to Expand Tokenized Stock Trading", Kraken Press Release, [date] [4] Backed Finance, "Backed Finance Launches xStocks Assets on Solana", Backed Finance Blog, [date]
- In the dynamic sphere of crypto trading, two prominent platforms, Kraken and Robinhood, are making headway with tokenized stocks, particularly in the Solana and Ethereum blockchain ecosystems.
- Kraken's xStocks platform, available as of mid-2025, offers over 60 U.S. stock and ETF tokens, including high-profile names like Tesla and Apple, on the Solana blockchain.
- These xStocks are directly tied to the underlying equities, with a 1:1 ratio, and are primarily issued as SPL tokens, enabling round-the-clock trading with weekend trading in development.
- Kraken has even launched xStocks on its own Ethereum layer-2 network, Ink, along with the Solana blockchain, although Ink has seen limited usage so far.
- Robinhood, however, has opted to build on Ethereum’s Arbitrum for its focus on tokenized assets, aiming to minimize liquidity fragmentation and enhance interoperability.
- Robinhood plans to launch tokenized stocks and ETFs initially in the European Union, with plans for a global rollout once regulatory clarity is achieved.
- One advantage of Arbitrum is the ability for developers to use specific libraries and components of their application, while enjoying the benefits of the battle-hardened Ethereum Virtual Machine code.
- Languages like c++ may attract game developers and traditional finance firms to Arbitrum Stylus, which enables developers to write smart contracts in various languages.
- Both Robinhood and Kraken are actively engaged in collaborations with regulatory bodies, striving to integrate their entire ecosystems onto the blockchain, reflecting the growing intersection of cryptocurrencies, finance, and technology in business and investment.
