Robinhood’s Crypto Lead Johann Kerbrat on Why Public Blockchains Will Prevail
By [Your Name] – February 11 2026
Robinhood Markets has taken another step toward mainstreaming digital assets by launching a testnet for an Arbitrum‑based roll‑up on Ethereum. The move was highlighted in a recent conversation with the firm’s head of crypto, Johann Kerbrat, who laid out his vision for how public blockchains—particularly Ethereum—are poised to become the default infrastructure for institutional finance.
The Testnet Announcement
Robinhood’s new testnet, built on Arbitrum, a Layer‑2 scaling solution for Ethereum, aims to demonstrate high‑throughput transaction processing while preserving the security guarantees of the underlying public chain. According to the company’s roadmap, the pilot will run through the summer, after which a phased rollout to Robinhood’s growing crypto user base is expected.
Kerbrat described the initiative as “the logical next step in providing our customers with faster, cheaper, and more reliable on‑chain experiences.” By leveraging Arbitrum’s optimistic roll‑up architecture, Robinhood can execute thousands of transactions off‑chain and settle them periodically on Ethereum, dramatically reducing gas costs without compromising decentralization.
Public Chains vs. Private “Fancy Databases”
During the interview, Kerbrat emphasized a central thesis: public blockchains will win out over private, permissioned networks for institutional use cases. His argument hinges on three pillars:
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Compliance Through Transparency
Public chains broadcast transaction data to a global network of validators. While this openness may appear at odds with privacy, Kerbrat noted that advanced zero‑knowledge proofs and on‑chain data‑access controls now allow institutions to meet regulatory requirements—such as AML/KYC and transaction reporting—without sacrificing the immutable audit trail that regulators demand. -
Economic Security
The security budget of a public blockchain like Ethereum, fueled by a multi‑billion‑dollar market cap and a diverse validator set, is orders of magnitude larger than any private consortium chain could amass. This makes public chains intrinsically resistant to attacks, a trait that is especially valuable for custodial services handling millions of dollars in client assets. - Network Effects and Interoperability
Ethereum’s ecosystem boasts a vibrant developer community, a rich suite of DeFi primitives, and cross‑chain bridges that private chains struggle to match. Kerbrat argued that building on a “fancy database” limits access to this liquidity, token standards, and composability that institutions increasingly require for product innovation.
In Kerbrat’s words, a private chain “doesn’t give you the same level of composability or the same security guarantees. It ends up being a siloed solution—essentially a sophisticated ledger, not a platform for open finance.”
Why the Timing Matters
Robinhood’s decision arrives at a moment when institutional appetite for on‑chain exposure is accelerating. Recent surveys show that over 60 % of asset managers consider direct crypto holdings a strategic priority, yet many remain wary of the operational and regulatory complexities of private‑chain deployments.
By aligning with Ethereum and its Layer‑2 ecosystem, Robinhood can:
- Offer clients compliant on‑ramp/off‑ramp pathways that sit on top of a public ledger.
- Reduce latency and fees for high‑frequency trading desks that demand millisecond execution.
- Tap into existing DeFi liquidity for services such as lending, staking, and derivatives without having to build those markets from scratch.
Kerbrat believes this alignment “creates a bridge between the regulatory world and the open‑source ethos of DeFi,” positioning Robinhood as a conduit rather than a gatekeeper.
Analyst Takeaways
| Takeaway | Implication |
|---|---|
| Public chains provide regulatory-friendly transparency | Institutions can satisfy audit trails and reporting obligations while still leveraging decentralized security. |
| Layer‑2 scaling resolves cost‑speed trade‑offs | Arbitrum’s roll‑up model lets Robinhood offer price‑competitive trading, a prerequisite for mass adoption. |
| Private chains risk isolation | Without the network effects of Ethereum, private solutions may become costly dead‑ends, especially as cross‑chain standards evolve. |
| Robinhood’s testnet is a signal to the market | Other fintech firms may follow suit, accelerating institutional migration to public blockchains. |
| Compliance tools are maturing | Zero‑knowledge and selective disclosure mechanisms are narrowing the privacy‑compliance gap on public ledgers. |
Looking Ahead
If Robinhood’s testnet validates the expected performance gains, the next logical step will be a full production launch integrated with the firm’s existing brokerage platform. That would give retail investors exposure to Ethereum‑based DeFi protocols under Robinhood’s compliance umbrella—an offering that could blur the line between traditional brokerage services and decentralized finance.
Kerbrat concluded with a forward‑looking statement: “The future isn’t private versus public; it’s about how public infrastructure can be harnessed responsibly to meet the stringent demands of institutional finance. That’s why we’re doubling down on Ethereum and its scaling solutions.”
Bottom line: Johann Kerbrat’s advocacy for public blockchains reflects a broader industry shift toward open, secure, and compliant on‑chain finance. Robinhood’s Arbitrum testnet serves as a practical proof point that institutions can achieve both privacy and regulatory assurance without abandoning the advantages of a public, decentralized network. The experiment’s outcome could shape the next wave of institutional crypto adoption.
Source: https://thedefiant.io/podcasts-and-videos/podcast/robinhood-s-crypto-head-johann-kerbrat-on-why-public-blockchains-will-win
