Ethereum Layer-2 Robinhood Chain Processes 138M Transactions

Crypto News

Robinhood’s Ethereum Layer-2 network, Robinhood Chain, processed 138 million transactions in its first 30 days, becoming the centerpiece of an all-time-high quarter for the brokerage. The company’s investor-relations disclosure showed second-quarter revenue reaching $1.31 billion, up 32% year over year and ahead of Wall Street expectations, while net income rose to $573 million, or $0.62 per share. Crypto transaction revenue declined 38% to $100 million, but prediction-market event contracts jumped more than tenfold to $156 million. Robinhood Chain launched its public mainnet on July 1 and already supports tokenized stocks, exchange-traded funds and decentralized finance services for eligible users in more than 120 countries.

The earnings release made clear that prediction markets, not crypto, drove Robinhood’s transaction engine. Event-contract revenue reached $156 million, exceeding both crypto trading’s $100 million and equities’ $129 million, while options added $342 million. Total transaction-based revenue climbed 44% to $776 million, and management said trading volumes in equities, options and event contracts set records. Net income included a $129 million gain tied to deconsolidation of Robinhood Ventures Fund I, a detail that matters for quality of earnings. Crypto notional volume totaled $40 billion, split between $18 billion on the retail app and $22 billion through Bitstamp. Despite the beat, shares slipped about 3% after the announcement.

Robinhood’s stock reaction showed that investors focused on the crypto slowdown. Shares fell about 4% in extended trading after already losing 3.1% during the regular session, even though adjusted earnings per share of $0.62 topped the $0.43 analyst estimate and revenue exceeded the $1.29 billion consensus. Crypto revenue fell from $160 million a year earlier to $100 million, underscoring weaker retail demand for major digital assets. The quarter also featured an expansion of tokenized U.S. stocks to eligible European customers through Robinhood Chain, an Ethereum-compatible network. In addition, the company introduced agentic trading tools that let third-party AI trading bot software execute trades under user-set limits.

The crypto line still delivered a relative positive: $100 million in transaction revenue versus the $86.6 million consensus estimate. That beat suggests overall crypto volumes held up better than feared during a quarter marked by softer prices and lower retail activity. The decline from $160 million a year earlier was steep, but the result was less damaging than the $86.6 million projection implied. Robinhood’s retail app generated $18 billion in crypto notional volume, down 35% year over year, while Bitstamp contributed $22 billion. For traders watching altcoin liquidity, the split shows how much activity has shifted toward acquired institutional venues.

Beyond trading fees, Robinhood’s platform metrics pointed to a broader financial-services strategy. Funded customers increased to 28.4 million, platform assets reached a record $369 billion, and Robinhood Gold subscribers rose 39% to 4.8 million. Quarterly net deposits were about $22 billion, while subscription and other revenue reached $143 million. Net interest revenue climbed to $389 million, helping offset weaker crypto transactions. Management said 13 business lines now generate at least $100 million in annualized revenue. The company also introduced Robinhood Earn, a decentralized lending product, entering a category associated with protocols such as Aave, and outlined crypto expansion plans for the U.K., Singapore and the European Union.

The forward question is whether Robinhood can turn Ethereum-based infrastructure into recurring crypto revenue. Robinhood Chain’s public mainnet supports tokenized real-world assets and institutional finance, with stock tokens available via Robinhood Wallet in over 120 countries. Daily decentralized exchange volume exceeded $600 million, and tokenized stock turnover rose from $5 million to $60 million within roughly 14 days, according to the company’s disclosure. Tokenized equities such as GameStop, Nvidia and SpaceX were among actively traded assets, though memecoins and stablecoins still dominate activity. Deeper Bitstamp integration and international rollout could revive transaction revenue if digital-asset conditions improve, but the current mix shows prediction markets and subscriptions carrying near-term growth.

COINOTAG’s analysis is that Robinhood’s quarter shows crypto brokerage economics are decoupling from pure token speculation. The company’s official disclosure now points to event contracts, tokenized equities and subscriptions as the growth bundle, while crypto fees remain under pressure. That shift matters because COINOTAG’s Fear and Greed Index reads 29/100, signaling Fear, and Bitcoin holds 69.8% of our tracked market cap of $1,840,840,384,772. In such conditions, retail appetite for high-beta altcoins stays selective. Ethereum-compatible settlement gives Robinhood a credible rail for real-world assets, but the test is whether chain usage and lending products convert into durable revenue rather than one-quarter volume spikes.