- Robinhood is partnering with Arbitrum to offer swaps on Arbitrum’s layer 2 scaling solution to Robinhood wallet users over the next few months. This will provide lower fees than Ethereum mainnet.
- Arbitrum batches transactions off-chain while relying on Ethereum for security. This helps with network congestion and high gas fees.
- The partnership has potential to introduce Arbitrum’s fast, low-cost transactions to Robinhood’s 22 million monthly active users. This unlocks DeFi benefits for everyday crypto investors on Robinhood.
Trading platform Robinhood has announced a new partnership with layer 2 scaling solution Arbitrum to offer swaps to users of Robinhood’s self-custody wallet. This integration will give Robinhood users access to Arbitrum’s low-cost, Ethereum-connected environment.
The News
Robinhood general manager Johann Kerbrat shared the news, stating that the integration will roll out over the next few months. Currently, Robinhood offers buying, selling, and transfers for leading cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. The addition of Arbitrum will allow Robinhood wallet users to trustlessly swap between assets at a lower cost than the Ethereum mainnet.
Arbitrum is a leading optimistic rollup scaling solution for Ethereum. It batches transactions off-chain while relying on Ethereum for security. This alleviates congestion and high gas fees on the blockchain itself. Arbitrum’s native token, ARB, surged on the Robinhood integration news.
The Potential Impact
This integration has the potential to introduce Arbitrum’s fast and low-cost transactions to Robinhood’s vast userbase. With over 22 million monthly active users, Robinhood bringing swaps to its self-custody wallet is a big win for Arbitrum adoption and awareness.
Robinhood offers an easy entry point to crypto investing for many first-time users. Adding Arbitrum swaps allows users to maximize returns by avoiding high Ethereum gas fees. This unlocks additional functionality of users’ crypto holdings.
The integration roll out will occur over the next few months, giving both teams time to ensure a smooth user experience. Overall, this partnership combines Robinhood’s reputation for user-friendly and intuitive design with Arbitrum’s fast, low-cost layer 2 environment. This brings the benefits of DeFi and Ethereum scaling to everyday investors on Robinhood.
