Robinhood selects Arbitrum One for cross-chain swaps, citing low transaction costs and rapid speeds. This partnership aims to reduce entry barriers to Web3 for new users.
Robinhood has opted for Arbitrum One as its preferred platform for the forthcoming cross-chain swaps feature, citing Arbitrum's affordable transaction costs, swift transaction speeds, and active community as pivotal factors, according to a recent announcement from Arbitrum. This decision aims to lower the barriers to entry for new participants in the Web3 domain through the Robinhood Wallet.
Renowned for its efficient layer 2 solutions for Ethereum, Arbitrum One provides scalability and reduced fees, which are crucial for the widespread adoption of blockchain technology. The collaboration is anticipated to encompass potential incorporations with native Arbitrum decentralized finance (DeFi) applications, as part of a broader strategy to enrich Robinhood’s ecosystem initiatives in the future, Robinhood highlighted in a blog post.
General Manager of Robinhood Crypto, Johann Kerbrat, underscored the significance of layer 2 solutions such as Arbitrum in mitigating the high gas fees on Ethereum that might dissuade new users.
“Layer 2s like Arbitrum, currently the leading chain by total-locked value, offer a solution to this issue for our users. Historically, accessing and transacting on L2s has posed challenges for non-crypto natives, but Robinhood Wallet now simplifies the process to facilitate the onboarding of newcomers to web3,” stated Kerbrat.
A.J. Warner, Chief Strategy Officer at Offchain Labs, the team behind Arbitrum, expressed enthusiasm regarding the potential ramifications of introducing low-cost in-app swaps to a broader audience.
“As DeFi continues to thrive on Arbitrum, we will witness one of the most recognizable trading platforms providing low-cost in-app swaps to a wide array of traders. This partnership propels web3 democratization forward and has the potential to empower users to delve deeper into the possibilities of web3 in finance,” remarked Warner.
The Robinhood Wallet aims to serve as a user-friendly entry point to the Web3 realm. It extends support to multiple networks like Bitcoin and Dogecoin, and furnishes both beginner-friendly interfaces and advanced tools for seasoned users.
Last August, Robinhood introduced in-app swaps for Ethereum and Polygon, granting users access to decentralized apps and enabling trading of over 200 tokens on these two chains.
While presently accessible on iOS, the wallet’s Android iteration is undergoing beta testing and is slated for imminent release.