What to know:
- dYdX Labs partners with Robinhood to launch Arcus, a standalone DEX for tokenized stock trading on Robinhood Chain.
- Arcus will offer commission-free trading on 95 tokenized stocks, perpetual contracts, and tokenized assets as collateral.
- The existing dYdX blockchain remains unchanged, continuing under community governance without affecting current users.
dYdX Labs has taken an important step in its development as it collaborates with Robinhood to introduce the Arcus DEX under the banner of Robinhood Chain. This partnership represents a significant shift in the firm’s strategy as it expands beyond its initial exchange platform to offer new products related to tokenized stock trading.
This was revealed on Wednesday via the X account belonging to Arcus. This means that dYdX Labs is now part of Arcus. The protocol will operate on Robinhood Chain, a new Layer-2 blockchain developed by Robinhood.
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dYdX Labs Unveils Arcus Trading Platform
Collaboration with dYdX Labs will not substitute for the dYdX blockchain that exists today. As stated on the dYdX website, Arcus is a stand-alone platform created by dYdX Labs in collaboration with Robinhood.
Additionally, the dYdX blockchain will keep on running as usual and will still be under the governance and ownership of its community. The existing users of the blockchain will not be impacted in any way by the introduction of Arcus.
Arcus will ensure free trading on 95 tokenized stocks along with perpetual contracts. Both these services are supposed to launch on the platform in the latter part of this month.
According to the blog post by Arcus, their objective is to break down those barriers that have restricted entry into financial markets. They plan to offer exposure to US stocks, commodities, indexes, and even pre-IPO through tokens.
In addition to that, users will also be allowed to utilize tokenized stocks as collateral while establishing perpetual positions.
Robinhood Strengthens Its Crypto Expansion
The rollout of the Arcus service comes in the context of Robinhood’s broader strategy to develop its crypto services. The firm has become increasingly focused on tokenized securities and perps as demand in these markets keeps rising.
The Robinhood app is looking to challenge the specialized perpetual trading platforms such as Hyperliquid, which has earned considerable market traction this year.
Arcus additionally confirmed that the company Robinhood Crypto had invested in the project, though the financials related to the investment were unknown.
Robinhood Chain Gains Major Support
Robinhood is one of many fintechs looking to diversify their blockchain offerings. In fact, back in February this year, Coinbase enhanced its offering by enabling its users to invest in thousands of stocks.
Like Coinbase’s Base Layer-2 network launch in 2023, Robinhood Chain has emerged as one of the biggest Layer-2 scaling solutions on Ethereum in terms of total value locked.
Adoption of Robinhood Chain is increasing within the cryptocurrency community. According to Bitget Wallet, it has implemented blockchain technology into its system, enabling its users to trade tokenized stocks using its wallet.
Meanwhile, the decentralized exchange aggregator 1inch has announced that it will be one of the early major swap platforms that will be supporting Robinhood Chain.
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