Robinhood Markets Inc. (NASDAQ:HOOD) ended the week on a strong note, trading higher and hitting a new all-time high.
What To Know: The stock has surged more than 115% in the past quarter, fueled by a wave of announcements tied to its growing presence in the cryptocurrency space. This week's rally came after the company launched Ethereum and Solana staking for U.S. users and rolled out tokenized equities across the European Union.
The staking update marked Robinhood's long-awaited entry into crypto yield offerings for U.S. customers, though it comes with a catch. Beginning Oct. 1, the platform will take a 25% cut of staking rewards. That's in addition to any external fees charged by third-party validators. Still, the move represents Robinhood's response to growing retail and institutional demand for yield-generating crypto products, after years of waiting on regulatory clarity. The new staking feature is currently unavailable in five U.S. states due to local restrictions.
The company is also pushing deeper into international crypto markets. It recently announced the acquisition of Bitstamp, one of the oldest operating crypto exchanges, which will broaden Robinhood's global footprint. In the EU, Robinhood has debuted tokenized versions of more than 200 publicly listed stocks, including non-tradable private tokens tied to companies like OpenAI and SpaceX. CEO Vlad Tenev said the long-term goal is to make private markets accessible to retail investors, a move he describes as a "major leap forward" in financial inclusion. These tokens, classified under EU crypto asset regulations, are minted and burned based on real equity transactions and are held by intermediaries on the customer's behalf.
Regulatory reaction has been mixed. While Robinhood maintains that it is operating within guidelines, Lithuania's central bank, its lead EU regulator, is now seeking clarification on the tokenized equity offering. At the same time, OpenAI publicly denied any formal partnership with Robinhood, leading to some confusion over how its name was used in promotional materials.
The company was briefly pressured earlier in the week when it failed to secure inclusion in the latest S&P 500 index rebalancing, a disappointment for some investors who had bet on its addition. Despite that, the broader sentiment on Wall Street remains bullish. KeyBanc raised its price target to $110, citing Robinhood's rapid expansion, innovative roadmap and potential 2025 revenues of $3.77 billion. Mizuho, Goldman Sachs and Compass Point have all reiterated Buy or Outperform ratings in recent months, though not all analysts agree. Redburn Atlantic downgraded the stock in May, expressing concern about valuation and regulatory risks.
As of Friday, Robinhood is trading just under $100, capping off a volatile but ultimately bullish week. The company's aggressive move into staking, tokenization and global crypto infrastructure has positioned it as one of the top-performing financial stocks of 2025 so far. But with regulatory questions still looming, the road ahead remains uncertain even as investor confidence surges.
HOOD Price Action: Robinhood shares were down 0.25% at $98.44 at the time of writing, according to Benzinga Pro.
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