Bank of America (BofA) has upgraded Coinbase (COIN) to "Buy" from "Neutral", highlighting the exchange's accelerating shift beyond its core crypto trading business toward a diversified financial ecosystem.
From Crypto to 'Everything Exchange': Coinbase's Transformation
Analyst Craig Siegenthaler noted in a Thursday research note that Coinbase is pursuing an "everything exchange" strategy — a single app where users could one day trade stocks, buy cryptocurrencies, make peer-to-peer payments, and even participate in prediction markets. Some of these plans were unveiled during a product presentation last December, including 24/5 stock and ETF trading on S&P 500 names set for 2026, an international rollout of equity perpetuals in 2026, and a new prediction markets tab via a partnership with CFTC-regulated exchange Kalshi.
On Thursday morning, Coinbase also announced that futures on copper and platinum will be available on its platform starting January 26. These expansions are designed to deepen user engagement and diversify revenue streams away from the volatility of crypto asset prices such as Bitcoin.
Base Chain and Tokenization: Betting on DeFi and RWA
Coinbase is doubling down on Base, its Ethereum Layer-2 network. Although Base launched without a native token, management is now considering one to decentralize the platform and boost usage. BofA estimates such a move could attract billions in capital and strengthen Coinbase's foothold in decentralized finance.
Another key initiative is Coinbase Tokenize, a platform to bring real-world assets like private equity and real estate onto the blockchain. The goal is to attract asset managers who want to reach younger, on-chain investors, benefiting from faster settlement and lower fees.
Stock Under Pressure, but Long-Term View Intact
COIN shares have fallen about 40% from their July peak, with short interest rising. Still, BofA maintains a price target of $340, implying nearly 40% upside. The bank argues that Coinbase is still in the early stages of monetizing its broader platform and remains well-positioned as the most regulated and trusted U.S.-based crypto company.
Near-term earnings remain vulnerable to crypto price swings, but BofA sees the bigger picture: a company transitioning from a trading venue into a comprehensive financial hub.