Despite a significant sell-off in crypto-linked equities, investment firm Bernstein has identified a compelling entry point for investors eyeing the burgeoning fields of tokenization and on-chain finance. The firm maintains "Outperform" ratings on key players Coinbase, Robinhood, and Figure, viewing the recent market correction as an enhanced risk-reward opportunity for long-term growth.
Market Correction Unlocks Strategic Entry
Bernstein reported to clients that the substantial decline in crypto-affiliated stocks—ranging from 57% to 62% from their 2025 peaks—has made these assets more attractive. While the firm did trim price targets for Coinbase (COIN), Robinhood (HOOD), and Figure (FIGR) due to immediate pressures and an anticipated weak first quarter, its conviction in their long-term potential remains strong, projecting double-digit revenue and earnings growth through 2027. This bullish outlook is anchored in the broader shift towards a tokenized financial infrastructure, encompassing stablecoins, tokenized credit, and on-chain prediction markets, all expected to gain significant traction in the coming years.
Key Players Driving the On-Chain Future
Bernstein's analysis highlights how each company is uniquely positioned within this evolving landscape. Figure (FIGR) is presented as a clear leader in tokenization, with its consumer lending market volumes forecasted to reach $12.8 billion this year and $16.5 billion by 2027, driven by expansion into small business and auto loans. Robinhood (HOOD)'s growth trajectory is tied to newer revenue streams, particularly the emerging $240 billion prediction market industry, alongside margin lending, subscriptions, deposits, and a general recovery in crypto activity. For Coinbase (COIN), the firm anticipates a strategic shift in its business mix, moving away from spot trading towards derivatives and stablecoin-related revenues. Stablecoin fees, especially those linked to Circle (USDC), are expected to contribute significantly to total revenue by next year, proving a durable long-term income driver even amidst market fluctuations or potential regulatory shifts regarding user yields.
