Bernstein analyst Gautam Chhugani raised the price target for Robinhood Markets to $160 on Monday, maintaining an “Outperform” rating on the stock. The adjustment follows a rapid institutional transition of real-world assets onto blockchain networks, moving capital away from traditional settlement systems.
Robinhood is pivoting its infrastructure to support tokenized equities on its Arbitrum-based “Robinhood Chain.” The corporate strategy shifts the firm away from its historical reliance on volatile retail cryptocurrency trading to capture more consistent institutional asset flows.
The transition aligns Robinhood alongside competitors Coinbase, Figure, and Circle as primary beneficiaries of this structural market change, placing the company as a top proxy in the tokenization supercycle outlook detailed by Bernstein.
Prediction markets are accelerating this revenue generation. The sector logged $60 billion in trading volume year-to-date in 2026, officially surpassing 2025 volume totals before the end of the third quarter. Bernstein projects the prediction market sector will reach $70 billion by the end of the year, generating roughly $1.4 billion in revenue for market makers and exchanges.
Brokers including Robinhood, Coinbase, Kalshi, and Polymarket are now aggressively pushing for formal regulatory legitimacy to corner this expanding sector. Stablecoin supplies, the primary liquidity vehicle for these markets, are projected to grow by 56 percent to $420 billion as mainstream fintech payment gateways process on-chain volume.
The Institutional Shift to On-Chain Equities
The valuation upgrade reflects a broader migration of traditional finance architecture. Real-world asset total value locked (TVL) is projected to more than double from $37 billion in 2025 to approximately $80 billion in 2026. Within that framework, equity tokenization is expected to jump from 2 percent to 16 percent of total blockchain TVL.
By migrating equities to the Arbitrum chain, Robinhood lowers backend settlement costs while opening secondary revenue channels through prediction market integrations. The shift alters the company’s core business model from a consumer trading app into an institutional blockchain settlement layer.