Why Is Robinhood Choosing Arbitrum over Solana?

Robinhood, a well-known trading platform, is expanding its reach into the digital currency space. They have opted to build their new cryptocurrency infrastructure on Arbitrum, leading to questions about why they didn’t select Solana, which has gained significant traction in the industry. One key reason is compatibility with the Ethereum Virtual Machine (EVM). Arbitrum makes it easier for developers to port existing Ethereum-based applications. This can be a crucial factor in accelerating development and reducing risks. Another possible reason is that Robinhood might have valued Arbitrum’s surrounding ecosystem, which includes a diverse set of tools, developers, and projects. This ecosystem could provide a more supportive environment for developing and scaling Robinhood’s crypto offerings. Solana, on the other hand, is known for its high transaction throughput and low fees. However, Robinhood may have prioritized other factors such as ease of development and integration with existing infrastructure, making Arbitrum the better fit for their needs. Ultimately, the decision is a combination of several strategic considerations.