Bank of America Upgrades Coinbase to Buy as It Evolves Into an All-in-One Financial Platform

Bank of America (BofA) has upgraded Coinbase (COIN) to a “buy” rating, citing the company’s strategic transformation beyond a pure crypto exchange into a diversified, full-stack financial platform. The upgrade reflects growing confidence in Coinbase’s long-term business model as it expands into new asset classes, products, and revenue streams.

In a research note published Thursday, BofA analyst Craig Siegenthaler described Coinbase’s ambition to become an “everything exchange.” The vision centers on a single application where users can trade cryptocurrencies, invest in stocks and ETFs, make peer-to-peer payments, and participate in prediction markets. This broader scope positions Coinbase to compete not only with crypto-native platforms but also with traditional financial services providers.

Coinbase outlined several of these initiatives during its December product showcase. Among the key announcements were plans to launch 24/5 stock and ETF trading for S&P 500-listed companies, introduce equity perpetuals for international users in 2026, and roll out a dedicated prediction markets tab through its partnership with Kalshi, a CFTC-regulated exchange. In addition, the company recently confirmed that futures contracts for copper and platinum will begin trading on January 26, further expanding its derivatives offering.

These product expansions are designed to boost user engagement while reducing Coinbase’s reliance on crypto trading fees, which are closely tied to price volatility in assets like bitcoin. BofA views this diversification as critical to stabilizing long-term revenue growth.

Another major growth driver is Base, Coinbase’s Ethereum layer-2 network. Although Base launched without a native token, management is now evaluating the potential introduction of one to decentralize the ecosystem and incentivize participation. BofA estimates that such a move could generate billions in capital while strengthening Coinbase’s footprint in decentralized finance.

Coinbase is also pushing into tokenization through Coinbase Tokenize, a platform aimed at bringing real-world assets such as private equity and real estate on-chain. This initiative targets asset managers seeking faster settlement, lower costs, and access to digitally native investors.

Despite a roughly 40% decline in COIN shares from their July peak and rising short interest, BofA reaffirmed a $340 price target, implying nearly 40% upside. The firm believes Coinbase remains the most regulated and trusted crypto-native company in the U.S. and is still in the early stages of monetizing its expanded ecosystem.