Crypto-Linked Stocks Rally as Robinhood Diversifies and Circle Gains on Stablecoin Policy Push

Crypto and Fintech Stocks Catch a Broad Bid

Robinhood Markets (HOOD) rose about 15% Thursday as new Wall Street coverage highlighted growth beyond its traditional brokerage business, including prediction markets, crypto infrastructure and other financial products. Webull (BULL) climbed roughly 12%, while Coinbase (COIN) gained more than 10%.

Circle Internet Group (CRCL) advanced about 15% after company President Heath Tarbert testified before Congress on stablecoin regulation and implementation of the GENIUS Act. The moves came as several crypto-linked businesses attracted renewed investor attention for different reasons, ranging from prediction markets to blockchain activity and stablecoin policy.

Key Points

• Robinhood shares rose about 15% as analysts highlighted prediction markets, growing customer assets and an expanding mix of financial products beyond traditional brokerage activity.
• Circle gained roughly 15% after its president testified before Congress on implementation of the GENIUS Act and the future U.S. framework for payment stablecoins.
• Webull and Coinbase also advanced sharply, while Robinhood’s Q2 event-contract revenue surpassed crypto transaction revenue, highlighting a shift in the company’s transaction mix.

Robinhood’s Revenue Mix Is Moving Beyond Traditional Brokerage

Robinhood’s latest move followed a series of analyst actions focused on the company’s expanding business model.

Morgan Stanley upgraded Robinhood to Overweight from Equal Weight and increased its price target to $150 from $124. Scotiabank initiated coverage with an Outperform rating and a $136 target, while Piper Sandler raised its target to $145 from $135.

The underlying business has also been expanding. Robinhood reported record second-quarter revenue of $1.31 billion and net income of $573 million, up 48% year over year. The company had 28.5 million funded customers and $355 billion in total platform assets as of July 31, while its 12-month net-deposit growth rate stood at 25%.

One of the clearest changes is occurring inside transaction revenue.

Crypto transaction fees declined 38% year over year in the second quarter and fell 25% sequentially. At the same time, prediction-market revenue reached $156 million, surpassing cryptocurrency revenue of $100 million. Event contracts traded increased more than tenfold year over year to 13.6 billion.

Piper Sandler’s latest price-target increase was based primarily on the prediction-market business. The firm projected approximately 29.7 billion event contracts between September and December 2026, generating an estimated $320 million in revenue over that period.

Robinhood is also expanding its blockchain operations. Robinhood Chain, an Ethereum layer-2 network launched in July, reported total value locked of $757.06 million. Decentralized-exchange volume reached $1.42 billion over 24 hours, while stablecoin market capitalization on the network exceeded $832 million.

The company’s broader business mix now includes transaction revenue, net interest income, subscriptions, exchange and clearing economics, and international crypto infrastructure.

Why Are Crypto-Linked Stocks Moving Higher?

The rally was not limited to Robinhood.

Webull shares climbed roughly 12%, while Coinbase rose more than 10%. Bitcoin was also up more than 4% in the supplied market data.

Circle’s move had a separate catalyst tied directly to stablecoin policy.

Circle President Heath Tarbert testified before the House Financial Services Committee and called for full implementation of the GENIUS Act, which establishes a federal framework for payment stablecoins covering reserves, redemption at par and disclosure requirements.

Tarbert also called for closing offshore loopholes and completing a broader market-structure framework around digital assets.

Circle shares moved above $100 during the session, with the stock gaining about 14% to 15% in the supplied market data.

Circle issues USDC, which had a market capitalization of approximately $73.68 billion and represented more than 24% of the total stablecoin market according to the supplied DeFiLlama data.

The company also recently attracted additional institutional activity. ARK Invest purchased 35,192 Circle shares worth approximately $3.36 million on Aug. 31. That purchase followed Circle’s announcement of a partnership with Chelsea Football Club, under which the Circle and USDC brands will appear on the front of the club’s men’s, women’s and academy shirts during the 2026-27 season.

What Matters Next for Robinhood and Circle?

For Robinhood, the latest data show that prediction markets have become a meaningful source of transaction revenue at the same time cryptocurrency trading activity has declined from year-earlier levels.

Event-contract revenue of $156 million exceeded crypto revenue of $100 million in Q2, while the number of contracts traded increased more than tenfold. Piper Sandler expects football-related prediction-market activity to increase during the fall, although that remains an analyst forecast rather than reported company revenue.

Robinhood’s blockchain operations provide another measure to follow. Robinhood Chain reported $1.42 billion in 24-hour decentralized-exchange volume, $757.06 million in total value locked and more than $832 million in stablecoin market capitalization.

For Circle, the regulatory framework remains central to the company’s current market narrative. The GENIUS Act is scheduled to take effect no later than January 2027, establishing federal standards for payment stablecoins.

Circle is also facing the prospect of additional competition. A group of 21 banks led by Goldman Sachs (GS) is developing a rival dollar stablecoin expected to launch in 2027 under the same regulatory framework.

At the same time, Circle’s Arc mainnet is scheduled to launch Sept. 16, providing another company-specific milestone for the stablecoin issuer.

What It Means for Investors

The latest stock market news across HOOD, CRCL, BULL and COIN shows that crypto-related equities are being influenced by a wider set of business drivers than cryptocurrency prices alone.

Robinhood provides the clearest example. Crypto trading remains part of the platform, but prediction markets generated more transaction revenue than crypto in the second quarter. The company is also expanding into blockchain infrastructure, retirement, banking and other financial products.

Circle represents a different part of the digital-asset ecosystem. Its business centers on stablecoins, and the latest price action followed renewed focus on the U.S. regulatory framework governing payment stablecoins.

Webull and Coinbase also participated in the broader move, while Bitcoin rose more than 4% in the supplied market data.

The common theme is diversification across the digital-asset and fintech market. Trading platforms, blockchain networks, stablecoin issuers and crypto exchanges are increasingly exposed to different sources of activity, even when their stocks move together during periods of stronger crypto-related market sentiment.

Conclusion

Crypto-linked stocks posted broad gains, but the underlying catalysts varied by company.

Robinhood climbed as analysts focused on its expanding revenue mix, particularly prediction markets, while the company’s Q2 results showed record revenue, rising platform assets and a sharp increase in event-contract activity.

Circle moved higher following congressional testimony centered on the GENIUS Act and the regulatory structure for U.S. payment stablecoins. Webull and Coinbase also advanced sharply during the session.

Together, the moves show how crypto-related company news is increasingly extending beyond token prices into prediction markets, blockchain infrastructure, stablecoin regulation and broader financial-platform expansion.

FAQs

Why is HOOD stock rising?

HOOD stock rose about 15% as new analyst coverage highlighted Robinhood’s prediction-market growth, expanding customer assets and broader mix of financial products beyond traditional brokerage activity.

How important are prediction markets to Robinhood?

Robinhood generated $156 million in event-contract revenue during Q2, surpassing its $100 million in cryptocurrency revenue. Event contracts traded increased more than tenfold year over year to 13.6 billion.

Why is CRCL stock rising?

CRCL stock gained roughly 15% after Circle President Heath Tarbert testified before Congress and called for full implementation of the GENIUS Act and a broader U.S. regulatory framework for digital-asset markets.

How large is Circle’s USDC stablecoin?

USDC had a market capitalization of approximately $73.68 billion and represented more than 24% of the total stablecoin market according to the supplied DeFiLlama data.

What other crypto-linked stocks moved higher?

Webull shares gained roughly 12% and Coinbase rose more than 10% in the supplied market data, while Bitcoin increased more than 4%.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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