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- Robinhood Chain halted block production for at least 14 minutes Friday before transactions began recovering.
- The two-month-old network has generated about $23 million in fees as Stock Tokens and onchain assets rapidly expand.
- Robinhood had not disclosed the outage’s cause, while AMC and others question Stock Tokens issued without companies’ participation.
Robinhood Chain’s rapid growth ran into two problems at once on Sept. 4 as the network briefly stopped producing blocks while AMC challenged its fast-growing Stock Token business.
On Sept. 4, the Ethereum layer-2 network halted block production for at least 14 minutes, stalling transactions before activity began recovering. Robinhood had not publicly disclosed the cause of the interruption at the time of publication.
The outage came roughly two months after the network’s public mainnet launch.
Robinhood Chain’s rapid growth raises the stakes
The disruption comes after Robinhood Chain rapidly emerged as one of crypto’s highest-earning networks, making even a brief interruption in block production more significant.
The network has generated about $23 million in cumulative fees, including roughly $4 million in a recent 24-hour period, Entropy Advisors’ Tom Wan said. Token Terminal separately estimated that Robinhood Chain accounted for 78.5% of layer-2 blockchain revenue over the past 30 days.
At its recent pace, Robinhood Chain’s revenue would annualize to roughly $1.7 billion. That figure extrapolates a short period of elevated activity rather than representing a formal revenue forecast, but it illustrates how quickly the two-month-old network has scaled.
DeFi activity has expanded alongside those fees. Data from DeFiLlama shows that the total value locked on Robinhood Chain climbed nearly 27% over the past week to roughly $840 million, while decentralized exchange activity has also accelerated as users move more assets and trades onto the network.
The chain is also creating revenue opportunities beyond transaction fees.
Wan estimated that Robinhood could have generated roughly $1.7 million from its share of USDG economics at a 3% annual yield.
Growth in assets held across Robinhood and Bitstamp may also support higher trading revenue, with crypto assets under management rising by about $4 billion on Robinhood and $600 million on Bitstamp.
Stock Tokens add another potential revenue not published a detailed fee schedule covering possible minting and redemption charges for authorized participants or market makers
This rapid expansion has pushed Robinhood Chain into territory normally occupied by much older networks like BNB Chain and others.
Stock Tokens draw resistance as adoption accelerates
That growth raises the cost of downtime as Robinhood pushes more financial products onto the network, including a Stock Token business already attracting resistance from some of the companies it tracks.
AMC Entertainment CEO Adam Aron challenged Robinhood this week after discovering a token tracking his company’s shares on the platform’s Ethereum layer-2 network.
“They are not registered under U.S. securities laws !!!!!! I find this practice to be contemptible, outrageous, disgusting, detestable, inexcusable, vile. How can it possibly be legal? We have no connection to this at all, and do not condone it in any way.”
Aron said AMC would ask outside securities counsel to examine the offering, while asking “Robinhood to voluntarily CEASE AND DECIST the trading of AMC stock tokens. If you don’t, our high priced securities counsel has been asked to see whether we can force you to stop.”
In response, Dan Gallagher, Robinhood’s chief legal officer, stated that the company will not stop trading the AMC token. He said:
“We know a little something about the US securities laws and will not ‘DECIST.’ Send your lawyers and we’ll educate them.”
The dispute highlights how Robinhood brings equities onchain without requiring participation from the companies being referenced.
Robinhood describes Stock Tokens as the flagship real-world asset on its chain. The ERC-20 tokens provide economic exposure to US shares and exchange-traded funds and can be transferred or used within onchain applications.
Robinhood tackled Coinbase head-on then immediately inherited Base’s biggest problem
The instruments are debt securities issued by Robinhood Assets Limited. Holders receive exposure to the performance of the referenced security but gain no legal or beneficial ownership of the underlying shares and no claim against the company whose stock is tracked.
The tokens are not registered under US securities laws and cannot be offered or sold to US persons.
That framework allows Robinhood to create an instrument linked to AMC’s share price without AMC participating in the issuance, with the legal relationship instead running between the token holder and Robinhood’s Jersey entity.
OpenAI previously raised a similar objection after Robinhood introduced tokens referencing the privately held company. OpenAI said the instruments were not OpenAI equity, that it had not partnered with Robinhood and that it did not endorse the offering.
However, corporate resistance has so far done little to slow demand.
Token Terminal data show Robinhood has become the largest Stock Token issuer by holder count in roughly two months, reaching about 862,800 holders. The wider tokenized-stock market has expanded more than eightfold over the past six months to roughly 2.6 million holders.
Trading has accelerated alongside that expansion. Tokenized stocks generated about $6.4 billion in decentralized exchange volume over the past 30 days, up more than 90% from the preceding period. PancakeSwap accounted for about $3.1 billion and Uniswap another $2.5 billion, giving the two exchanges the overwhelming majority of activity.
Stock Tokens now represent more than $200 million of active real-world assets on Robinhood Chain, while stablecoins on the network have approached $1 billion.
The scale puts the Sept. 4 outage in perspective. Robinhood is positioning its chain as infrastructure for financial products that can trade and move onchain while simultaneously expanding a Stock Token model that some of the referenced companies have openly rejected.
As more assets and users migrate onto those rails, Robinhood will have to demonstrate that the infrastructure can support the financial activity its distribution network is bringing onchain.
Related CompanyRobinhoodAmerican financial services companyRelated AssetBNBBNB$721.4024-hour change: down0.55%Related AssetUniswapUNI$6.1724-hour change: down3.67%Related AssetEthereumETH$2,455.0624-hour change: down2.18%Related AssetUSDGUSDG$0.90Related CompanyOpenAIAI research and deployment companyRelated CompanyBinanceGlobal crypto exchangeRelated CompanyBitstampEuropean based cryptocurrency marketplace
FeaturedAdoptionTechnologyTradingTokenizationLayer-2OutageRobinhood
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Source: cryptoslate.com