Robinhood’s blockchain expansion is emerging as a potentially meaningful business, with Citizens analyst Devin Ryan raising his price target for Robinhood Markets (HOOD) to $165 from $155 and projecting roughly $365 million in Robinhood Chain net revenue in 2027. The estimate implies about $1 million in daily net revenue. Launched on July 1, 2026, Robinhood Chain is an Ethereum Layer 2 (a network that processes transactions away from Ethereum’s main chain) using ETH for gas fees and focused on tokenized real-world assets, especially Stock Tokens designed for trading outside traditional market hours. Memecoins and decentralized exchange activity have driven early usage, with daily fees sometimes exceeding $4 million and occasionally surpassing Solana’s revenue. By early September 2026, total value locked had exceeded $400 million, while annualized decentralized exchange volume reached $200 billion. Ryan’s projection assumes Robinhood crosses an 85% revenue-sharing threshold with Arbitrum, the technology stack behind the chain. Under the arrangement, Arbitrum receives 10% of net sequencer revenue, divided between the Arbitrum DAO (decentralized community-led organization) treasury and the Developer Guild at 8% and 2%, respectively. Ryan retained his Market Outperform rating. Analysts expect revenue sources to broaden beyond memecoins, potentially including prediction markets, perpetual futures and tokenized equities that can trade continuously and serve as collateral in DeFi (decentralized finance) protocols. More cautious forecasts put near-term revenue in the tens of millions, with hundreds of millions possible over the longer term. The arrangement also gives Arbitrum recurring revenue from a major financial player, while Robinhood gains a blockchain platform connected to its existing retail brokerage user base. Coinbase’s Base, its own Layer 2, launched earlier and has developed substantial developer mindshare.