Bernstein analysts raised their price target on Robinhood Markets based on their investment thesis that the online brokerage’s next phase of growth will be driven by tokenized stocks and prediction markets rather than traditional crypto trading.
Bernstein upped his price target on Robinhood (HOOD) stock from $130 to $160 per share and maintained an outperform rating on the stock in a research note on Monday. HOOD stock was last trading around $101.
Analysts said prediction markets is poised to become Robinhood’s fastest-growing business, with the division’s revenue expected to reach $1.7 billion by 2028, representing a compound annual growth rate of 64%.
Beyond prediction markets, Bernstein identified tokenized equities as a key long-term opportunity, pointing to Robinhood’s investments in blockchain infrastructure. The company highlighted Robinhood Chain, its Arbitrum-based layer 2 network, as a unique infrastructure for tokenized real-world assets, allowing the platform to build on-chain financial products without relying on third-party blockchains.
Bernstein said tokenization is emerging as a fundamental layer of capital markets, predicting that the value of on-chain real-world assets will increase from around $35 billion today to $2 trillion to $4 trillion by 2030. Analysts expect tokenized equities to account for an increasing share of that growth as adoption expands beyond Treasury bills and private credit.
Robinhood competes across major “battleground” asset classes, including prediction markets, perpetual futures, and tokenized RWA. Source: Bernstein
Wall Street expands tokenization infrastructure
Bernstein’s report comes as financial institutions continue to expand their tokenized securities infrastructure.
On Monday, securities infrastructure provider Alpaca and financial technology company Broadridge Financial Solutions announced that they have integrated Broadridge’s shareholder governance tools into Alpaca’s Instant Tokenization Network. The integration aims to give token holders the same governance rights as traditional shareholders, adding features such as voting rights, investor communications, and regulatory disclosure of tokenized securities.
The announcement follows last week’s partnership between tokenization platform Securitize and investment bank Cantor Fitzgerald to develop the infrastructure for a blockchain-based initial public offering and additional equity issuance within existing U.S. securities regulations.
As tokenized stocks continue to gain momentum, they are getting a boost from institutional investors. The asset class has grown to nearly $2 billion in market value this year, according to RWA.xyz.
