Robinhood (HOOD) Stock: Plans $500M Bond Sale Backed by Credit Cards

TLDR

• Robinhood is exploring its first-ever credit card asset-backed securities (ABS) deal
• The offering targets at least $400 million, potentially reaching $500 million
• Bonds will be split into four tranches; the top-rated portion is priced at ~0.8% above benchmark
• Wells Fargo and Barclays are managing the sale
• Wall Street holds a Strong Buy consensus on HOOD with an average price target of $114.04

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Robinhood Markets is looking to raise up to $500 million through its first-ever bond sale backed by credit card receivables, according to a Bloomberg report published Monday.

The deal would involve pooling balances owed by Robinhood’s credit card customers and using those expected payments to pay back bond investors. The structure is known as asset-backed securities, or ABS.

At a minimum, Robinhood plans to raise $400 million. The bonds will be divided into four separate tranches. Early price talk on the highest-rated portion sits at roughly 0.8 percentage points above the standard benchmark rate.

Wells Fargo and Barclays are managing the bond sale. Coastal Community Bank holds the underlying branded credit card accounts, according to a note from Fitch Ratings.

HOOD stock was down 1.88% at the time of reporting.

Robinhood Markets, Inc., HOOD

Robinhood’s Credit Card Push

The bond sale comes as Robinhood continues to build out its financial services business. In March, it launched a premium credit card with a $695 annual fee, plated with real platinum — a direct shot at American Express territory.

That card came two years after Robinhood introduced its no-fee Gold Card, which gave it an initial foothold in consumer credit.

This new bond offering would allow Robinhood to tap into the capital that its growing credit card book is generating, rather than relying solely on equity or traditional debt.

The timing puts Robinhood in good company. Credit card ABS deals have been a popular fundraising tool this year, with businesses collectively raising more than $11 billion through this structure in 2026 alone.

Just last week, Capital One closed a $3.85 billion credit card receivables bond deal — the largest of its kind so far this year.

What Wall Street Thinks of HOOD

Analyst sentiment on Robinhood remains firmly positive. Based on ratings from the past three months, HOOD carries a Strong Buy consensus, built on 16 Buy ratings, three Holds, and zero Sells.

The average price target sits at $114.04 per share, suggesting roughly 3.8% upside from current levels.

The bond deal, if completed, would mark a new chapter for a company that built its name on commission-free stock trading before expanding into crypto, retirement accounts, and now consumer credit at scale.

Capital One’s $3.85 billion ABS deal last week remains the benchmark Robinhood’s offering will be measured against as investor interest is gauged.