Robinhood Chain suffers outage as companies challenge Stock Tokens

Robinhood Chain halted block production for at least 14 minutes on Sept. 4. The interruption stalled transactions before activity began recovering. Robinhood had not publicly disclosed the cause at the time of publication. The outage occurred roughly two months after the network's public mainnet launch. Entropy Advisors' Tom Wan said Robinhood Chain had generated about $23 million in cumulative fees. Wan said the network generated roughly $4 million in fees during a recent 24-hour period. Token Terminal 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 and is not a formal revenue forecast. DeFiLlama data showed that total value locked on Robinhood Chain climbed nearly 27% over the past week to roughly $840 million. Decentralized exchange activity also accelerated as users moved more assets and trades onto the network. Wan estimated that Robinhood could have generated roughly $1.7 million from its share of USDG economics at a 3% annual yield. Crypto assets under management rose by about $4 billion on Robinhood. Crypto assets under management rose by $600 million on Bitstamp. Robinhood has not published a detailed fee schedule for possible Stock Token minting and redemption charges. AMC Entertainment CEO Adam Aron challenged Robinhood after discovering a token tracking AMC shares on the network. Aron said the token was not registered under U.S. securities laws. Aron said AMC had no connection to the token and did not condone it. Aron said AMC would ask outside securities counsel to examine the offering. Aron asked Robinhood to stop trading the AMC Stock Token voluntarily. Robinhood Chief Legal Officer Dan Gallagher said Robinhood would not stop trading the AMC token. Gallagher said Robinhood would respond to AMC's lawyers. Robinhood describes Stock Tokens as real-world assets on its chain. The ERC-20 tokens provide economic exposure to U.S. shares and exchange-traded funds. The tokens can be transferred or used within onchain applications. Robinhood Assets Limited issues the instruments as debt securities. Holders receive exposure to the referenced security's performance. Holders receive no legal or beneficial ownership of the underlying shares. Holders have no claim against the company whose stock is tracked. The tokens are not registered under U.S. securities laws. The tokens cannot be offered or sold to U.S. persons. OpenAI previously raised a similar objection to tokens referencing the privately held company. OpenAI said the tokens were not OpenAI equity. OpenAI said it had not partnered with Robinhood. OpenAI said it did not endorse the offering. Token Terminal data showed that Robinhood had become the largest Stock Token issuer by holder count in roughly two months. Robinhood had about 862,800 Stock Token holders. The wider tokenized-stock market expanded more than eightfold over the past six months to roughly 2.6 million holders. Tokenized stocks generated about $6.4 billion in decentralized exchange volume over the past 30 days. That volume was up more than 90% from the preceding period. PancakeSwap accounted for about $3.1 billion of the volume. Uniswap accounted for another $2.5 billion. Stock Tokens represented more than $200 million of active real-world assets on Robinhood Chain. Stablecoins on the network had approached $1 billion.