Bank of America has upgraded Coinbase’s stock to a “buy,” arguing that the exchange’s expanding product suite and push beyond pure crypto trading are reshaping its long-term growth profile.
In a research note published Thursday, BofA analyst Craig Siegenthaler said Coinbase (COIN) is evolving into what he described as an “everything exchange” — a single platform where users could eventually trade equities, buy and sell crypto, make peer-to-peer payments, and participate in prediction markets.
The bank pointed to a slate of new initiatives unveiled at Coinbase’s December product showcase. Among them are plans for 24/5 trading in U.S. stocks and ETFs tied to S&P 500 names, the launch of equity perpetuals internationally in 2026, and the introduction of a prediction markets tab through a partnership with Kalshi, a CFTC-regulated exchange.
Coinbase is also continuing to broaden its derivatives offering. Earlier Thursday, the company announced that futures contracts tied to copper and platinum will begin trading on the platform on January 26.
BofA said the product expansion should drive deeper user engagement while reducing Coinbase’s reliance on transaction revenue tied to crypto price volatility, particularly swings in bitcoin BTC $90,630.47.
Beyond trading, the bank highlighted Coinbase’s growing investment in Base, its Ethereum layer-2 network. While Base initially launched without a native token, management is now considering issuing one to support decentralization and incentivize activity. BofA estimates such a move could generate billions of dollars in capital while accelerating Coinbase’s push into decentralized finance.
Another strategic pillar is Coinbase Tokenize, a platform designed to bring real-world assets such as private equity and real estate onto the blockchain. The initiative targets asset managers seeking exposure to younger, on-chain investors while benefiting from faster settlement and lower transaction costs.
Despite a roughly 40% decline in COIN shares from their July peak and a rise in short interest, Bank of America reiterated a $340 price target, implying close to 40% upside from current levels. The firm said Coinbase remains in the early stages of monetizing its broader ecosystem and retains a competitive edge as the most regulated and trusted crypto-native platform in the U.S.
While near-term results remain sensitive to crypto market volatility, BofA said the longer-term story is centered on Coinbase’s transformation from a trading venue into a full-scale financial services hub.
