Robinhood, the Menlo Park-based trading platform, is making waves again. On July 29, 2025, JPMorgan took a bullish turn, doubling its price target for Robinhood to $98 by 2026 from $47 in 2025. This optimistic forecast stems from Robinhood’s ambitious foray into the world of crypto and tokenized finance, highlighted by its recent acquisition of the European crypto exchange Bitstamp and bold new product rollouts.
Crypto Moves and Market Reactions
The financial landscape is abuzz with Robinhood’s strategic maneuvers. It’s not just about traditional stocks anymore. With the European Union’s MiCA regulatory framework now in play, Robinhood has launched tokenized stock trading across the bloc. This move opens up over 200 tokenized equities and ETFs for trading, almost around the clock, with expectations for full 24/7 access once Bitstamp’s order book fully integrates. This isn’t just a European affair either; it’s setting the stage for global shifts, especially with U.S. regulators appearing to soften their stance on similar innovations. As explored in our recent coverage of the House gearing up for a crypto market structure vote, these regulatory shifts could have significant implications for platforms like Robinhood.
JPMorgan’s reasoning for the revised price target is clear: Robinhood’s gamble on crypto and tokenization could significantly boost its operating leverage, laying the groundwork for long-term gains. The $200 million Bitstamp acquisition, finalized in June, is a key piece of this puzzle, providing a foothold in the European market and expanding Robinhood’s crypto capabilities.
Financial Performance and Future Prospects
Robinhood’s financials are on the radar, with the company set to unveil its second-quarter earnings on Wednesday. Analysts, including those at JPMorgan, anticipate earnings per share of 31 cents, a notable increase from the 21 cents reported a year ago. Transaction-based revenue is expected to climb to $515 million. However, the real story lies in crypto. FactSet estimates a doubling of crypto trading revenue to $169.3 million, although this figure lags behind the first quarter’s $247 million. This fluctuation underscores Robinhood’s vulnerability to the volatile crypto market.
Despite these challenges, Robinhood’s stock has surged 170% this year, recently trading at $105.95, albeit with a slight dip of 0.7%. It seems Wall Street is starting to place bigger bets on Robinhood’s future, drawn by the allure of its crypto ventures and potential regulatory shifts.
A Glimpse into Tokenized Futures
Robinhood’s foray into tokenized trading isn’t just a flash in the pan. Under the EU’s regulatory umbrella, users can now trade tokenized shares of private companies like OpenAI and SpaceX. This opens up new investment avenues traditionally closed off to average investors. Compass Point, a research firm, notes that this could pave the way for broader DeFi applications, leveraging Robinhood’s platform to democratize access to high-profile investments. However, as noted in our analysis of the crypto market structure bill, there are concerns that such regulatory changes could adversely affect DeFi in the U.S.
Interestingly, while the revenue from these tokenized offerings remains nascent, signals from the U.S. could bode well for Robinhood. The SEC’s recent approval of a broker-dealer license for Dinari, a startup focused on tokenized equity trading, hints at a warmer reception for such platforms in the States. This could potentially unlock new markets for Robinhood if the winds of regulatory change blow favorably.
As Robinhood continues to expand its horizons, questions linger about the sustainability of its growth. Can the platform maintain its momentum amidst crypto market fluctuations? And will regulatory bodies fully embrace these new financial frontiers? One thing’s for sure: Robinhood is on a journey, and the path it charts could redefine the trading landscape.
Source
This article is based on: Robinhood Price Target Doubled by JPMorgan on Crypto and Tokenization Bets
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
