Bernstein analysts raised their price target on Robinhood Markets Monday, citing the brokerage’s expanding blockchain strategy — including tokenized equities and its Arbitrum-based Robinhood Chain — as a potential catalyst to reduce reliance on traditional crypto trading revenue. The firm lifted its target to $65 from $55, maintaining an Outperform rating.
The upgrade reflects growing confidence that Robinhood’s crypto infrastructure play can generate durable, high-margin revenue streams beyond the boom-and-bust cycles of spot trading. Robinhood Chain, a layer-2 network built on Arbitrum, is designed to settle tokenized securities and support prediction markets, areas where the company sees regulatory tailwinds and first-mover advantage among retail-focused brokers.
Tokenized equities — blockchain representations of traditional stocks — could allow 24/7 trading, fractional ownership, and near-instant settlement, addressing structural limitations of legacy market infrastructure. Robinhood has signaled plans to launch tokenized stock offerings in jurisdictions with clear regulatory frameworks, starting with the European Union under MiCA.
Prediction markets, meanwhile, offer a novel engagement mechanic that blends trading with event outcomes. Robinhood’s partnership with ForecastEx, a CFTC-regulated derivatives exchange, positions it to offer election and economic indicator contracts to U.S. retail users — a market currently dominated by offshore platforms.
Bernstein estimates these initiatives could contribute $200-$300 million in incremental annual revenue by 2027, diversifying a business that still derives the bulk of its crypto income from transaction fees on Bitcoin, Ethereum, and Dogecoin. The analysts noted that Robinhood’s 24 million funded accounts and trusted brand give it a distribution edge over crypto-native competitors.
Risks remain. U.S. regulatory clarity on tokenized securities is evolving, and the SEC has signaled scrutiny of platforms offering digital asset securities. Prediction markets face political headwinds, with some lawmakers seeking to ban election-related contracts. But Robinhood’s regulated-broker status and proactive compliance posture may insulate it better than unlicensed rivals. Source: Cointelegraph
