Coinbase earns ‘buy’ upgrade from Bank of America as business diversifies beyond crypto

Bank of America has turned more bullish on Coinbase, upgrading the stock to a “buy” as the exchange accelerates its shift toward a broader, multi-asset platform.

In a research note published Thursday, BofA analyst Craig Siegenthaler said Coinbase (COIN) is laying the groundwork to become an “everything exchange,” offering users access to equities, crypto, payments, and prediction markets within a single app.

The bank pointed to several new products unveiled at Coinbase’s December showcase, including plans for 24/5 trading in U.S. stocks and ETFs tied to S&P 500 companies, the launch of equity perpetuals outside the U.S. in 2026, and a new prediction markets feature enabled through a partnership with Kalshi, a CFTC-regulated exchange.

Coinbase is also expanding its derivatives lineup. Earlier Thursday, the company said futures contracts linked to copper and platinum will begin trading on the platform on January 26.

BofA said the growing range of offerings should increase user engagement and help reduce Coinbase’s dependence on crypto trading volumes, which remain closely tied to price fluctuations in assets such as bitcoin BTC $90,630.47.

Beyond centralized trading, the bank highlighted Coinbase’s investment in Base, its Ethereum layer-2 network. While Base launched without a native token, management is now considering issuing one to support decentralization and incentivize usage. BofA estimates a token launch could generate billions of dollars in proceeds while strengthening Coinbase’s push into decentralized finance.

Another key growth initiative is Coinbase Tokenize, which aims to bring real-world assets — including private equity and real estate — onto the blockchain. The platform targets asset managers seeking access to younger, on-chain investors while benefiting from faster settlement and lower costs.

Despite a roughly 40% decline in COIN shares from their July highs and rising short interest, Bank of America maintained a $340 price target, suggesting nearly 40% upside. The firm said Coinbase remains in the early stages of monetizing its expanded ecosystem and is well-positioned as the most regulated and trusted crypto-native platform in the U.S.

While near-term earnings remain sensitive to crypto market volatility, BofA said Coinbase’s longer-term trajectory points toward a transformation from a crypto exchange into a full-service financial platform.