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Coinbase (COIN) shares rose as much as 4.6% after the company outlined a roadmap that included equity trading, AI-powered tools, tokenization and stablecoin infrastructure in its end-of-year System Update.
The stock rose to as high as $255.41 in early trading Thursday and was priced recently at $249.48 after the Wednesday announcement.
J.P. Morgan’s Kenneth Worthington said the event showed Coinbase expanding its reach by introducing more asset classes and tools to keep users engaged. He highlighted the introduction of U.S. equity trading, perpetual equity futures for non-U.S. users, and the Coinbase Advisor product as signals that the company is reshaping its core business.
“The Coinbase announcements last night highlighted that it is giving its customers far more products to transact,” he wrote Thursday, adding that the expansion “meaningfully increases” Coinbase’s total addressable market. While revenue details were sparse, Worthington said he sees opportunity in both subscription and transaction-based models. He also noted the rollout of branded stablecoins and Base App expansion as important steps toward long-term engagement.
J.P. Morgan rates Coinbase overweight with a $244.19 price target.
Owen Lau, an analysts at Clear Street, came away with a similar view, calling the update a coordinated product expansion that marks Coinbase’s transition from a crypto-only exchange into a broader financial platform. He pointed to the addition of stock trading as a notable shift, especially because the company had previously downplayed the idea. The move may signal future plans to offer tokenized equities, Lau said.
The introduction of an AI-powered advisor also stood out. Lau said it could become a valuable tool for simplifying investment decisions and increasing customer retention, especially for less experienced users. He noted that direct deposit features and crypto lending could help Coinbase gain traction as a primary financial account, though competing with traditional banks for paycheck deposits will be a challenge.
Derivatives remain a core part of the growth strategy, Lau wrote, citing the introduction of equity futures with up to 20x leverage and around-the-clock market access. Because derivatives tend to generate higher volume and revenue stability, Lau said they could help reduce Coinbase’s earnings volatility over time. Coinbase announced the $2.9 billion acquisition of crypto options exchange Deribit in May.
Clear Street has a Buy rating on Coinbase with a $415 price target.
Citi analysts, led by Peter Christiansen, said the update is a milestone that expands access to new and traditional assets while building out payments, developer tools and tokenization rails that could deepen liquidity over time.
The event underscored Coinbase’s effort to expand access to a broader range of assets, which “deepens the platform’s competitive moat,” analysts led by Peter Christiansen wrote.
The analysts also pointed to payments and money-transfer utility tied to stablecoin USDC and newer x402 payments as steps toward diversifying revenue and enabling fresh use cases such as agentic commerce.
Upgrades to Coinbase’s developer tools via CDP, alongside efforts to connect onchain functionality with traditional finance through tokenization and on/off-ramps, bolster the company’s ambition to be an “operating system” for onchain activity, the analysts said.
Citi called Coinbase’s “Everything Exchange” plan ambitious and said investors will need solid execution, including clearer disclosure on how it executes, along with greater regulatory certainty to look past near-term volatility and focus on longer-term catalysts.
The bank said it remains convinced the upside is too significant to ignore and continues to see Coinbase’s category leadership strengthening, maintaining its buy rating and $505 price target.
Barclays, in contrast, holds an equal weight rating on Coinbase with a $291 price target.
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