Robinhood Markets Inc. (NASDAQ:HOOD) could see substantial upside as tokenization, prediction markets and blockchain infrastructure become increasingly important growth drivers beyond crypto trading.

HOOD’s Evolving Strategy

In a Bernstein research report, analysts led by Gautam Chhugani highlighted that Robinhood’s crypto strategy is evolving from a trading-focused business into a broader tokenization and financial infrastructure platform.

The firm identified Robinhood Chain, tokenized equities, Bitstamp and Robinhood Earn as the company’s next major crypto growth drivers.

Robinhood Chain has generated more than $12 billion in decentralized exchange volume and processed over 150 million transactions since its launch. Meanwhile, Robinhood Earn has attracted more than $200 million in deposits.

CEO Vlad Tenev noted that recently launched products could help support long-term crypto growth, despite weaker trading activity during the second quarter.

Analysts maintained an Outperform rating and a $160 price target on the brokerage platform. This implies an approximate 85% upside from current levels.

Prediction Markets Overtake Crypto Revenue

Bernstein also highlighted the rapid growth of Robinhood’s prediction market business, The Block reported.

The company’s Rothera exchange processed more than 3.5 billion contracts, including 2.1 billion during Q2. It generated around $17 million in quarterly revenue and is now the third-largest exchange of its kind in the U.S., Bernstein said.

"Management expects a greater share of prediction market flow to migrate to Rothera over time," the analysts wrote.

Crypto revenue declined nearly 40% as industry trading volumes weakened. Bernstein consequently reduced its 2026 crypto trading revenue estimate by 49%.

Tenev dismissed concerns that the decline reflected a structural slowdown, arguing that digital assets remain in a long-term growth cycle.

Robinhood Expands Beyond Trading

Tenev pointed out that Robinhood is becoming increasingly diversified across products and revenue streams.

The company’s Robinhood Legend trading platform and credit card business are each generating more than $100 million in annual revenue, according to the CEO.

Robinhood’s longer-term strategy centers on expanding financial ownership through tokenization, private-market access, retirement products and global investing.

Tenev said the company ultimately aims to increase U.S. equity ownership from roughly 65% of households to more than 90%.

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