Standard Chartered Bank initiated research coverage of Arbitrum on Tuesday, projecting that the ARB token—the native asset of this Layer 2 blockchain network—could surge from its current price of approximately $0.14 to $10 by the end of 2030, representing a potential 70-fold increase.
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Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, characterizes Arbitrum as “blockchain infrastructure for traditional finance.” He argues that its business model—facilitating the migration of traditional financial institutions’ operations onto the blockchain—positions it to benefit significantly from the rapid growth of tokenized assets.
Standard Chartered forecasts that the market for tokenized assets will expand from its current value of approximately $340 billion to $4 trillion by the end of 2028.
The report identifies Arbitrum and Base as the two leading Layer 2 blockchain networks today. Whenever other projects are built using Arbitrum’s technology stack, Arbitrum captures a 10% share of the net protocol revenue.
Kendrick cites the launch of “Robinhood Chain”—which went live on the Arbitrum technology stack on July 1—as a prime example. It is considered the fastest-growing blockchain in terms of Total Value Locked (TVL) to date; Kendrick estimates that it will generate approximately $5 million in fee revenue for Arbitrum in September—more than five times the level seen prior to its launch.
The analyst notes that while Arbitrum shares similar economic models with Layer 1 blockchains like Ethereum and Solana, it is currently significantly undervalued by the market—a gap he expects to narrow over time.
Kendrick also highlights potential risks, including a possible slowdown in the tokenization process and competition from rival chains. He further points out that while ARB currently lacks a direct value-accrual mechanism, buyback programs could emerge as the ecosystem matures.
He adds that in the blockchain space, “liquidity tends to attract more liquidity,” and the early success of Robinhood Chain increases the likelihood that other traditional financial institutions will deploy projects on the Arbitrum technology stack.