Standard Chartered Sets $10 Price Target for Arbitrum's ARB by 2030

Standard Chartered has initiated coverage of the Layer 2 blockchain Arbitrum, forecasting its native ARB token could surge approximately 70-fold to $10 by the end of 2030. The bank's bullish outlook is rooted in the belief that Arbitrum is uniquely positioned to facilitate the integration of traditional finance (TradFi) with blockchain technology.

The 'Blockchain for TradFi'

In a research note published Tuesday, Geoff Kendrick, Standard Chartered's global head of digital assets research, described Arbitrum as "the blockchain for TradFi." The bank's thesis hinges on the rapid growth expected in tokenized assets, which it forecasts will reach $4 trillion by the end of 2028, up from about $340 billion today.

Kendrick argues that Arbitrum's business model is well-suited to capture a significant share of this market. As one of the two dominant Layer 2 networks, Arbitrum earns a rolling fee of 10% of net protocol revenue when other projects build on its technology stack.

Robinhood Partnership as a Key Driver

The report highlights the recently launched Robinhood Chain as a prime example of Arbitrum's revenue potential. Launched on Arbitrum's stack on July 1, it has become the fastest-growing chain on record by total value locked.

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Kendrick estimates this partnership could generate around $5 million in fees for Arbitrum in September alone, a figure more than five times the pre-launch levels. This early success, he notes, could create a network effect where "liquidity tends to beget liquidity," attracting other major TradFi operators to build on Arbitrum.

Valuation and Risks

Standard Chartered believes the market currently assigns little value to Arbitrum relative to Layer 1 blockchains like Ethereum and Solana, despite similar economics. The bank expects this valuation gap to close over time, forecasting ARB will rise to $0.50 by the end of 2026 before climbing to its $10 target by 2030.

However, the note also flagged potential risks to the forecast, including:

• A slower-than-anticipated pace of asset tokenization.
• Increased competition from rival blockchain networks.
• The fact that the ARB token currently has no direct mechanism to accrue value, though Kendrick suggested a buyback program could emerge as the ecosystem matures.