Bank of America (BofA) has upgraded Coinbase (COIN) to a “buy” rating, pointing to the exchange’s ambitions beyond crypto trading and its increasingly diversified business model.
In a research note published Thursday, BofA analyst Craig Siegenthaler emphasized that Coinbase aims to transform into a “everything exchange,” a single app where users can someday trade stocks, buy cryptocurrencies, make peer-to-peer payments, and even bet on prediction markets.
The company detailed some of these plans during a product showcase in December, where it announced upcoming features such as 24/7 trading on S&P 500 stocks and ETFs, perpetual equities launching internationally in 2026, and a new tab for prediction markets in partnership with CFTC-regulated exchange Kalsi.
Earlier on Thursday, Coinbase announced that copper and platinum futures will go live on its platform on January 26th.
These expansions are aimed at deepening user engagement and diversifying Coinbase's revenue beyond its core cryptocurrency trading business, which remains heavily tied to price fluctuations in assets such as Bitcoin. BTC$90,573.28.
Coinbase is also making a big bet on Base, its Ethereum Layer 2 network. Although initially launched without tokens, administrators are now considering native tokens to decentralize the platform and encourage usage. BofA estimates that the move could raise billions of dollars in cash while strengthening Coinbase's efforts in decentralized finance.
Another major initiative is Coinbase Tokenize, a platform designed to bring real-world assets such as private equity and real estate onto the blockchain. It aims to serve asset managers looking to tap into younger on-chain investors while taking advantage of faster settlements and lower fees.
Even though COIN stock has fallen 40% since its July high and short-term interest rates have risen, BofA maintains a $340 price target, implying nearly 40% upside. The company claims that Coinbase is still in the early stages of widespread platform monetization and remains well-positioned as the most regulated and trusted crypto-native company in the United States.
While Coinbase's short-term financials remain sensitive to cryptocurrency price fluctuations, BofA sees the long-term outlook as the company transforms from a trading platform to a full-stack financial hub.
