Standard Chartered Sets $10 Long-Term Price Target for Arbitrum

Standard Chartered has initiated coverage of Arbitrum (ARB) with a bullish long-term price target of $10 by the end of 2030. This projection suggests a significant valuation increase from the token's recent trading levels, signaling a strong institutional vote of confidence in the network's infrastructure.

The bank's outlook is primarily anchored in the success of the Robinhood Chain, which utilizes Arbitrum's technology stack. Central to this growth is the Arbitrum Expansion Program (AEP), a mechanism where external chains using the stack pay a rolling fee equal to 10% of their net protocol revenue back to the Arbitrum ecosystem. By positioning itself as an enterprise-grade infrastructure provider for traditional financial (TradFi) firms, Arbitrum is creating a scalable pipeline for recurring revenue.

The Shift to Revenue-Driven Valuation

This strategic pivot reflects a broader evolution in how digital assets are valued. For years, Layer 2 solutions were judged primarily on total value locked (TVL) or speculative growth. However, Standard Chartered suggests the market is moving toward a model where actual revenue generation is the critical metric.

Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, noted that digital assets are transitioning to a state where revenue is critical. He emphasized that because Arbitrum's business model is heavily focused on revenue, the ARB token is positioned to benefit from this shift. This transition could potentially re-rate ARB's valuation multiple, moving it closer to the valuation profiles typically seen with primary Layer 1 blockchains.

The TradFi Catalyst

The integration of traditional finance is expected to be the primary engine for this growth. Standard Chartered projects that the scale of tokenized assets on-chain will expand dramatically, growing from approximately $340 billion to $4 trillion by the end of 2028. As TradFi institutions seek secure, scalable environments to host these assets, the Arbitrum stack provides a proven blueprint for integration.

Future Outlook

While the long-term target is aggressive, the immediate focus remains on the adoption rate of the AEP model. The Robinhood Chain serves as the primary case study for how TradFi integration can generate annualizable revenue for the underlying technology provider. Investors will likely watch for further institutional partnerships that mirror the Robinhood deployment to determine if the $10 target is sustainable.

Whether other major financial entities follow this lead will determine if Arbitrum can successfully transition from a scaling solution to a foundational piece of global financial infrastructure.