- Bank of America upgraded Coinbase to Buy with a $340 target, arguing it is becoming an “everything exchange” beyond crypto.
- Coinbase is expanding into 24/5 S&P 500 stock/ETF trading, prediction markets via a Kalshi partnership, and tokenized real-world assets.
- It also plans international equity perpetuals in 2026 and is launching copper and platinum futures on Jan. 26.
- Analysts flag upside from diversification but note major execution and regulatory hurdles, including potential exploration of a Base network token.
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The upgrade by Bank of America reflects a strategic turning point for Coinbase—from primarily a crypto trading venue to a diversified financial services platform. Analysts emphasize the company’s pushes into equities trading (including 24/5 S&P 500 stock/ETF offerings), prediction markets via Kalshi, and real-world asset (RWA) tokenization as critical levers for transforming its revenue base and reducing dependency on volatile crypto trading fee income.
The exploration of a native token for the Base network marks a material shift in Coinbase’s earlier stance of maintaining Base as a token-free L2. While timing and design remain undecided, it opens pathways for governance, incentive alignment, and greater ecosystem value capture as volume and infrastructure grow.
However, execution risks are significant. Regulatory approval for tokenized securities and assets remains uncertain, particularly in the U.S., where Coinbase must obtain SEC comfort via no-action letters or exemptive relief to avoid operating as an unregistered broker-dealer. Liquidity and investor protections for tokenized assets and equity perpetuals also present structural challenges.
Strategic implications include a potential re-rating of Coinbase’s valuation multiple under Wall Street approaches valuing integrated platforms commanding broader product suites (brokerage, custody, trading, token issuance). If successful, diversified revenue streams via equities, prediction markets, Base token, and tokenized RWAs could underpin accelerated earnings growth. Conversely, failure or delays in regulatory or product execution may result in investor frustration and valuation reversion.
Open questions to monitor closely are: regulatory outcomes for Base token and tokenized equities; RWA token liquidity; competition with traditional brokers and DEXs; and whether Coinbase can maintain low-risk operational and compliance profiles while scaling new product verticals.
Supporting Notes
- BofA upgrade to “Buy” rating and $340 target, citing Coinbase’s expansion beyond crypto into equities, prediction markets, and real-world asset tokenization.
- New product launches: 24/5 stock and ETF trading for S&P 500 names, equity perpetuals internationally in 2026, and partnership with Kalshi for prediction markets.
- Futures on copper and platinum launching on January 26 announced by Coinbase.
- Exploration of Base native token confirmed publically in September 2025 by Base’s leadership; design and timing still in early phases.
- Market pullback: COIN stock fell about 40% from its July high; BofA believes nearly 40% upside remains to the $340 target.
- Regulatory hurdles: exploring approval for tokenized equities; tokenized assets are treated under securities law, requiring regulatory clarity.