Crypto Exchange Coinbase (Coin) is one of the most misunderstood companies in the digital asset space, Wall Street broker Bernstein said in a research report Wednesday.
Bernstein has increased its Coinbase price target from $310 to $510, repeating its stock outperform rating. Stocks were more than 4% higher at around $360 on Wednesday morning in early trading.
While broader sentiment is bearish, Coinbase has solidified its role as a “universal bank” of crypto, with peers bridging retail, institutional and chain infrastructure on an unparalleled scale, the report says.
“Coinbase is a beneficiary of genius law and will soon comply with clarity,” wrote an analyst led by Gautam Chhugani.
Bernstein said the exchange was the only company in the S&P 500 that came from a crypto, and continues to control US deals despite competitive pressures.
Coinbase's Stablecoin business, which is responsible for around 15% of total revenue, is expanding rapidly through integrations such as Shopify, the report says.
On the institutional aspect, Coinbase protects custody of eight of the 11 Bitcoin ETF publishers, the broker noted.
With the recent acquisition of DERIBIT, the world's largest crypto option exchange, and the explosive growth of the Ethereum Layer 2 network, which already hosts tokenization pilots like JPMorgan's JPMD Coin, Coinbase is quietly assembled the core infrastructure of its next fiscal system.
read more: Coinbase is good for profiting in the US.
