On February 11, Robinhood deployed its Arbitrum layer-2 network to integrate decentralized finance protocols directly into its app, enabling 23 million funded users to access on-chain swapping, liquidity pools and yield-earning strategies without commissions. The new infrastructure bridges users' on-chain wallets with brokerage custodial accounts, aiming to streamline transfers between traditional assets and DeFi services while maintaining regulatory compliance.

During the announcement, CEO Vlad Tenev described prediction markets as entering a 'supercycle' driven by rising user engagement, expanded event-based trading opportunities and clearer regulatory frameworks. He emphasized that scaling these markets could unlock a new revenue segment by capturing fees from real-world outcome wagering and bespoke contract offerings.

Major cryptocurrencies Bitcoin, Ether and XRP have each fallen more than 5% over the past week amid broader market headwinds, pressuring trading activity. A subsequent rebound in digital asset prices could spur renewed user engagement and boost transaction volumes on Robinhood’s platform, supporting fee-based revenue growth.