Robinhood Blockchain Surpasses Solana, BNB Chain in Fees
Wall Street research firm Bernstein has reaffirmed its positive stance on Robinhood Markets (NASDAQ: HOOD), citing the brokerage's proprietary blockchain as a significant contributor to profit. Analysts led by Gautam Chhugani maintained an Outperform rating and a $160 price objective, approximately 31% above Friday's close of $122.11.
The key driver behind this view is Robinhood Chain, an Ethereum layer-2 network built with Arbitrum technology that launched on July 1. In just over two months, the chain has attracted around $1.5 billion in total value locked and processed more than $50 billion of decentralized-exchange volume.
Daily trading fees are now ranging between $2 million and $4 million, with cumulative fees since launch standing at near $39 million. Bernstein projects that the network could generate approximately $160 million in annual fees by 2028, making it a high-margin line rather than a cost center for the company.
The note emphasizes that Robinhood's blockchain is no longer just an experimental venture but has become an earnings engine. The Economics of the arrangement favor Robinhood, with the company retaining around 90% of fee revenue and sharing less than 1% with Ethereum for data availability.