The new blockchain expands the company’s crypto offering by combining tokenized stocks, decentralized lending and perpetual futures on an Arbitrum-based layer 2 Ethereum network, analysts said.
While early trading was driven by memecoins, the broker expects Robinhood to increasingly focus on real-world tokenized assets, including stocks and commodities, as well as perpetual futures.
The report also highlighted Robinhood’s integrations with partners such as Uniswap, Morpho, Lighter, Chainlink and BitGo, as key to creating liquidity and expanding the utility of tokenized assets.
The launch comes in the form of real-world tokenized assets to continue to outperform the broader crypto market. The sector has grown to over $51 billion, up around 50% year-to-date, while tokenized stocks have risen around 170% this year to $1.9 billion, highlighting growing investor interest in tokenizing regulated assets, the report adds.
Bernstein has an Outperform rating on Robinhood stock with a $130 price target. Shares were down 0.6% in early trading Monday, at $111.35.
Learn more: Robinhood rolls out public blockchain as it expands deeper into crypto