Crypto Biz: Is the AI-to-crypto rotation underway?
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- Bernstein raised its price target on Robinhood shares to $160 from $130 while maintaining an Outperform rating, arguing tokenized assets and prediction markets—not traditional crypto trading—will fuel the brokerage's long-term growth.
- Bernstein forecasts prediction markets will become Robinhood's fastest-growing business, projecting $1.7 billion in revenue from the segment by 2028.
- Robinhood's Arbitrum-based layer-2 network is identified by Bernstein as key infrastructure for bringing real-world assets onchain, with tokenized equities flagged as a major growth opportunity.
- Broadridge, Alpaca, Securitize, and Cantor Fitzgerald are expanding blockchain-based securities infrastructure as Wall Street's tokenization push accelerates.
- Bernstein named prediction markets, perpetual futures, and tokenized equities as the key competitive battlegrounds for Robinhood going forward.
Why it matters: The 23% price target increase reframes Robinhood's crypto exposure from speculative trading to infrastructure plays—tokenization rails and prediction markets—that Bernstein models as recurring revenue streams. Its $1.7 billion 2028 prediction-markets forecast alone would represent a material new revenue line beyond the brokerage's traditional transaction-based model.
