JPMorgan Doubles Robinhood Price Target on Crypto Push and Tokenized Stock Expansion
Robinhood’s aggressive foray into digital assets and tokenized equities is fueling long-term optimism, prompting JPMorgan to raise its 2026 price target on the stock to $98, up from $47 for 2025.
The investment bank cited new product rollouts, including tokenized equity trading in the European Union and the recent $200 million acquisition of crypto exchange Bitstamp, as major drivers behind the revised valuation.
Earnings Preview and Crypto Surge
Robinhood (HOOD) is set to report second-quarter earnings this Wednesday. JPMorgan projects earnings per share of $0.31, up from $0.21 a year earlier, in line with FactSet estimates. The bank also expects transaction-based revenue to hit $515 million.
Crypto trading is a standout, with revenue expected to reach $169.3 million, more than doubling from the same period last year. However, this figure remains below Q1’s $247 million, highlighting the platform’s sensitivity to shifts in digital asset activity.
Shares of Robinhood, which have climbed 170% year-to-date, were trading slightly lower at $105.95 on Tuesday.
Tokenization Strategy Gains Momentum
JPMorgan points to Robinhood’s efforts in tokenized finance as a key long-term growth lever. The company recently began offering tokenized stock trading in the EU under MiCA regulations, allowing users to trade over 200 tokenized equities and ETFs with near 24/7 access. Full round-the-clock trading is expected once Bitstamp’s order book is integrated.
In markets where payment for order flow is restricted, Robinhood earns a 0.1% fee on dollar conversions. The firm also plans to offer tokenized exposure to private firms like SpaceX and OpenAI, bringing traditionally inaccessible investments to retail traders and setting the stage for potential decentralized finance (DeFi) integrations.
Regulatory Tailwinds Emerging
Though still in early stages, tokenized equities are gaining traction. Notably, the SEC recently approved a broker-dealer license for Dinari, a startup focused on tokenized stock trading—signaling growing regulatory openness that could benefit Robinhood’s U.S. expansion.
While JPMorgan maintains a neutral rating on Robinhood stock, the report highlights a shift in sentiment among investors who see the company’s crypto and tokenization strategies as increasingly central to its future valuation.
