Arbitrum

Arbitrum uses optimistic rollup technology: it batches transactions, executes them on its own faster chain, and posts the result to Ethereum with a challenge window during which anyone can dispute a wrong result. Because Ethereum is the final source of truth, Arbitrum inherits the settlement guarantees of Ethereum instead of running its own independent security model. For a bank or asset manager that already treats Ethereum as the reference chain for tokenized assets, a fund token issued on Arbitrum settles, in the end, against the same base layer as one issued directly on Ethereum, at a fraction of the transaction cost.

The Arbitrum DAO, which governs the network through ARB token holders, approved a 35 million ARB allocation under its STEP program into tokenized US Treasury products from three institutional issuers: BENJI from Franklin Templeton, the onchain share class of its government money market fund, Spiko's USTBL, and WTGXX from WisdomTree. BENJI from Franklin Templeton runs across eight public blockchains including Arbitrum, and the BUIDL fund from BlackRock, tokenized by Securitize, is also live on Arbitrum alongside Ethereum, Avalanche and other chains. Compare BENJI with other onchain funds in the overview of tokenized money market funds.

Robinhood launched tokenized US stocks and ETFs for users in the EU and EEA on Arbitrum, structured as derivatives regulated under MiFID II. The tokens trade inside the Robinhood Crypto app and are meant to move onto Robinhood Chain, a dedicated layer 2 Robinhood is building on the Arbitrum stack, once that network takes over settlement. Robinhood named Chainlink as its oracle provider for the product, to guard against the price and uptime risks a bridge or a sequencer outage could otherwise create. Tokenized stocks sets this model next to other share tokens, such as the xStocks of Backed Finance.

Tokenized stocks from Robinhood trade on Arbitrum, and Robinhood Chain, a layer 2 the company built on the Arbitrum stack, went live as a public mainnet on 1 July 2026 (Robinhood). Robinhood wants settlement around the clock and an environment it manages directly for compliance and order routing, neither of which a shared public network gives it by default. A user who wants to withdraw a token keeps native self-custody either way. The stock and ETF tokens are structured as derivatives under MiFID II, the EU's investor-protection framework for financial instruments, which sets the compliance bar regardless of which layer ultimately settles the trade.

Chainlink supports Arbitrum with its Data Feeds, CCIP and other products, the same oracle network infrastructure that Chainlink runs for banks and market infrastructures. A tokenized treasury fund or a tokenized stock needs a reliable price or net asset value written to the chain before a lending protocol or a broker can use it as collateral or settle a trade against it; that is the role Chainlink plays for the Franklin Templeton, WisdomTree and Robinhood products named above. DefiLlama also lists Chronicle and RedStone among the oracles on Arbitrum.

Finance Loop is the meeting place for people who work on tokenization and layer-2 infrastructure at banks, asset managers and fintechs, connecting the finance, IT and AI communities with events in Frankfurt and also in Munich, Berlin and Hamburg. Finance Loop has been a partner of the Crypto Assets Conference of Frankfurt School and Deutsche Börse, where tokenized market infrastructure makes up much of the program, and lists the Frankfurt Forum on Digital Assets & Applications by d-fine, with panels on DLT market infrastructure. Both sit in Finance Loop's Investment & Digital Assets track.

Arbitrum hosts tokenized treasury funds from Franklin Templeton, WisdomTree and BlackRock, and it is the network Robinhood chose for its tokenized US stocks and ETFs sold to EU and EEA users. The low fees and Ethereum-based security of Arbitrum make it a common secondary chain for a fund product that launches on Ethereum first.

Arbitrum settles its transaction results back to Ethereum and relies on a challenge window in which a fraudulent result can be disputed and reverted at the Ethereum base layer. The smart contracts of Arbitrum that enforce this process have been audited by firms including Trail of Bits, but the security guarantee comes from Ethereum, not from a separate validator set.

Yes. Chainlink supports Arbitrum with Data Feeds and CCIP, and Robinhood named Chainlink as the oracle provider for its Arbitrum-based tokenized stock product for EU users.

ARB is the governance token of Arbitrum, whose holders vote on Arbitrum DAO proposals, including the STEP program that allocated 35 million ARB into tokenized US Treasury products from Franklin Templeton, Spiko and WisdomTree. ARB gives no claim on any of the tokenized funds or stocks that settle on the network.