Analysts at Bernstein have raised their price goal on Robinhood Markets, based mostly on their funding thesis that the net brokerage’s subsequent part of development can be pushed by tokenized equities and prediction markets slightly than conventional crypto buying and selling.
In a Monday analysis observe, Bernstein raised its price goal on Robinhood (HOOD) inventory to $160 from $130 per share and maintained its Outperform score. HOOD inventory was final seen buying and selling round $101.
The analysts mentioned prediction markets are poised to turn out to be Robinhood’s fastest-growing enterprise, forecasting section income to succeed in $1.7 billion by 2028, representing a 64% compound annual development fee.
Past prediction markets, Bernstein recognized tokenized equities as a significant long-term alternative, pointing to Robinhood’s funding in blockchain infrastructure. The agency highlighted Robinhood Chain, the corporate’s Arbitrum-based layer-2 community, as its proprietary infrastructure for tokenized real-world property, enabling the platform to construct on-chain monetary merchandise with out counting on third-party blockchains.
Bernstein mentioned that tokenization is rising as a foundational layer for capital markets, projecting that the worth of onchain real-world property will develop to between $2 trillion and $4 trillion by 2030 from roughly $35 billion immediately. The analysts count on tokenized equities to account for an rising share of that development as adoption expands past Treasury securities and non-public credit score.
Robinhood is competing throughout key “battleground” asset lessons, together with prediction markets, perpetual futures and tokenized RWAs. Supply: Bernstein
Wall Avenue expands tokenization infrastructure
The Bernstein report comes as monetary establishments proceed to broaden infrastructure for tokenized securities.
On Monday, brokerage infrastructure supplier Alpaca and monetary expertise firm Broadridge Monetary Options introduced they’d built-in Broadridge’s shareholder governance instruments into Alpaca’s Prompt Tokenization Community. The combination provides capabilities reminiscent of proxy voting, investor communications and regulatory disclosures for tokenized securities, aiming to present token holders governance rights akin to these of conventional shareholders.
The announcement follows final week’s partnership between tokenization platform Securitize and funding financial institution Cantor Fitzgerald to develop infrastructure for blockchain-based preliminary public choices and follow-on fairness choices inside present US securities rules.
The institutional push comes as tokenized shares proceed to achieve traction. The asset class has grown to just about $2 billion in market worth this yr, in response to RWA.xyz.
