Arbitrum rises 17% on rumors of Robinhood partnership
Arbitrum token surges 17% amid Robinhood partnership speculation
The Arbitrum (ARB) token soared 17% over the past 24 hours, driven by speculation that Robinhood Markets Inc. may announce a strategic partnership with the Ethereum layer-2 network.
Excitement spiked after Robinhood revealed on X that Ethereum co-founder Vitalik Buterin, Robinhood Crypto general manager Johann Kerbrat, and Offchain Labs chief strategy officer A.J. Warner would join a fireside chat on Monday at Robinhood’s Europe-hosted crypto event in Cannes, France, reports Cointelegraph.
The event is being promoted as unveiling Robinhood’s “biggest crypto announcements of the year,” fueling intense community speculation. The ARB token rallied from around 31 cents to an intraday high of 38.6 cents within hours, though it remains significantly below its all-time high of $2.39 set in January 2024.
Robinhood’s Blockchain Strategy May Focus on Arbitrum
Talks about Robinhood’s blockchain ambitions had surfaced earlier in May, when Bloomberg reported that the trading platform was exploring options to develop a decentralized infrastructure allowing European investors to trade U.S. stocks. At the time, Arbitrum and Solana were reportedly among the blockchains Robinhood was considering for this initiative, but no final decisions had been disclosed.
Speculation now leans heavily toward Arbitrum as the likely choice, with crypto insiders suggesting Robinhood may launch its own blockchain using the Arbitrum stack. If confirmed, this would represent a significant milestone for Robinhood’s Web3 strategy, possibly combining Ethereum’s security, Arbitrum’s scalability, and Robinhood’s retail user base to create a powerful trading ecosystem.
Robinhood Shares and Market Sentiment React Positively
Investor excitement extended beyond the crypto markets, as Robinhood’s stock (HOOD) gained 1.65% in overnight trading, climbing to $84.26 after closing at $83.03 on Friday. Traders appear to be positioning themselves for a potentially market-moving announcement on Monday, with some analysts predicting the event could further solidify Robinhood’s growing crypto ambitions.
While the Arbitrum token remains deeply discounted from its 2024 highs, the current surge suggests renewed investor optimism about the project’s future adoption. If Robinhood does confirm a partnership or blockchain integration with Arbitrum, it could mark a pivotal step in bringing layer-2 scalability to mainstream retail traders, potentially reshaping how traditional and decentralized markets intersect.
Recently we wrote that Robinhood, the American fintech giant known for its commission-free trading, has expanded its crypto derivatives offerings by launching micro futures contracts for Bitcoin (BTC), Solana (SOL), and XRP.
