Bank of America Elevates Coinbase to Buy on Multi-Asset Expansion Strategy

Bank of America has upgraded Coinbase stock to “buy” with a $340 price target, signaling 38% upside potential from current trading levels around $245.60. This move marks the second major rating elevation in a week, following Goldman Sachs’ similar upgrade issued earlier. The analyst perspective reflects a fundamental shift in how the market views the cryptocurrency exchange—no longer as a pure-play crypto trading platform, but as an evolving financial services ecosystem.

Analyst Upgrade Reflects Coinbase’s Pivot to Everything Exchange

BofA’s Craig Siegenthaler characterized Coinbase’s transformation as a pivot toward becoming an “everything exchange,” a strategic repositioning that extends far beyond traditional spot cryptocurrency trading. In December, Coinbase announced plans to launch 24/5 stock and ETF trading for S&P 500-listed companies, directly competing with traditional brokerage infrastructure. The platform’s partnership with Kalshi brings prediction market functionality into the trading interface, while the announcement of copper and platinum futures launching in late January further diversifies the asset classes available.

This product expansion addresses a critical vulnerability in Coinbase’s business model: its historical dependence on cryptocurrency price volatility. By broadening the asset spectrum available to users, the company reduces correlation to bitcoin price movements and creates multiple revenue streams. The strategy mirrors traditional financial exchanges’ approach to risk diversification, yet maintains Coinbase’s crypto-native positioning.

Base Network Token: Unlocking Billions in Developer Incentives

Bank of America highlighted a significant opportunity through a potential Base network token launch. Base, Coinbase’s Ethereum layer-2 scaling solution, currently operates without a native token. The bank estimates that issuing a Base token could raise billions in capital while simultaneously accomplishing two strategic objectives: decentralizing network governance and incentivizing developer communities to build decentralized finance applications on the platform.

Such a token launch would attract early adopters to on-chain products while reducing barriers to entry for developers seeking to build within the Base ecosystem. Although Coinbase has not made an official announcement regarding token plans, the strategic rationale appears increasingly compelling as layer-2 networks mature and compete for developer mindshare.

Tokenized Assets Open New Revenue Frontiers

Coinbase Tokenize represents another dimension of revenue expansion, bringing real-world assets—including private equity stakes and real estate holdings—onto blockchain infrastructure. By targeting asset managers seeking to reach younger, crypto-native investor demographics, the platform offers blockchain settlement advantages: faster processing speeds and reduced transaction costs compared to traditional settlement systems.

Bank of America characterized this initiative as expanding Coinbase’s total addressable market, effectively constructing a “new financial system” architecture. The platform’s accelerating product development, evident despite the 40% decline from July peaks, demonstrates management’s commitment to these diversification initiatives. Cross-selling opportunities among new service offerings position the company to capture greater wallet share from both existing and newly acquired users.

Technical Setup Improves as Selling Pressure Reverses

Beyond fundamental product developments, technical market conditions have shifted favorably. Short interest positioning in COIN has begun reversing, while tax-loss harvesting pressures that weighed on the stock through late 2024 have now abated. These technical improvements, combined with the product roadmap acceleration and new service launches, create what Bank of America views as a constructive setup for appreciation.

The stock’s 2025 volatility—trading between $151.80 and $419.80 for a 176.6% range—underscores the asset’s sensitivity to sentiment shifts and market cycle positioning. However, the firm maintains that Coinbase represents the most heavily regulated and trusted cryptocurrency entity operating in the United States, a regulatory moat that supports valuations through market cycles.

Looking ahead, Coinbase’s near-term performance will inevitably remain influenced by cryptocurrency market conditions. However, the company’s deliberate strategy to build revenue diversification into its infrastructure suggests management is actively constructing a business model less vulnerable to crypto price cycles. International expansion of equity perpetuals trading scheduled for 2026 represents another step in this multiyear transformation.