Wall Street's prediction: Robinhood's future trades on tokens, not tweets 🪙

Bernstein has raised its price target on Robinhood Markets to $160 from $130 per share, maintaining an Outperform rating on the stock, citing the online brokerage's push into tokenized equities and prediction markets as its next phase of growth. HOOD was last seen trading around $101.

In a Monday research note, Bernstein analysts forecast that prediction markets will become Robinhood's fastest-growing segment, projecting segment revenue of $1.7 billion by 2028, representing a 64% compound annual growth rate. The firm said the business extends beyond the platform's traditional crypto trading activity and positions the company in what analysts called key "battleground" asset classes, including prediction markets, perpetual futures and tokenized real-world assets.

Bernstein highlighted Robinhood Chain, the company's Arbitrum-based layer-2 network, as proprietary infrastructure for tokenized real-world assets and on-chain financial products that do not rely on third-party blockchains. The firm projected that the value of onchain real-world assets will grow to between $2 trillion and $4 trillion by 2030 from roughly $35 billion today, with tokenized equities taking an increasing share as adoption expands beyond Treasury securities and private credit.

The report arrived as financial institutions continued building tokenized securities infrastructure. On Monday, brokerage infrastructure provider Alpaca and financial technology company Broadridge Financial Solutions announced they had integrated Broadridge's shareholder governance tools into Alpaca's Instant Tokenization Network, adding proxy voting, investor communications and regulatory disclosures for tokenized securities. The announcement followed last week's partnership between tokenization platform Securitize and investment bank Cantor Fitzgerald to develop infrastructure for blockchain-based initial public offerings and follow-on equity offerings within existing U.S. securities regulations.

Tokenized stocks have grown to nearly $2 billion in market value this year, according to RWA.xyz.