America

Bank

Momentum

<p><a href="https://www.cnn.com/markets/stocks/BAC" rel="noopener noreferrer nofollow">Bank of America</a> analysts upgraded <a href="https://www.coindesk.com/markets/2026/01/08/bank-of-america-upgrades-coinbase-to-buy-as-exchange-moves-beyond-crypto" rel="noopener noreferrer nofollow">Coinbase</a> to a “Buy” rating from “Neutral,” pointing to the crypto exchange’s growing role in tokenization and blockchain infrastructure.</p>
<p>The analysts kept their price target unchanged at $340 per share, but said the company’s outlook has strengthened following several recent product launches.</p>
<p>They highlighted Coinbase’s ability to broaden revenue streams through offerings such as stock trading and prediction markets, which could diversify the business beyond traditional crypto trading.</p>
<h2 class="wp-block-heading" id="tokenization-seen-as-a-strategic-advantage">Tokenization Seen As A Strategic Advantage</h2>
<p>According to the analysts, <a href="https://live.euronext.com/en/product/equities/US19260Q1076-BGEM" rel="noopener noreferrer nofollow">Coinbase</a> occupies a distinctive position as asset managers show increasing interest in issuing tokenized versions of securities like exchange-traded funds.</p>
<p>They emphasized that Coinbase’s advantage lies in non-consumer-facing infrastructure, which differentiates it from many competitors focused primarily on retail trading.</p>
<p>Last month, Coinbase introduced Coinbase Tokenize, a platform designed to provide asset managers with issuance, custody, compliance, and access to Coinbase’s large client base.</p>
<p>Given its institutional and retail reach, the analysts argued that Coinbase is well-positioned to “create markets and distribute products” at scale.</p>
<h2 class="wp-block-heading" id="beyond-stocks-and-etfs">Beyond Stocks And ETFs</h2>
<p>While Coinbase’s tokenization strategy has largely focused on stocks and ETFs, Bank of America analysts also identified real estate and private companies as potential growth areas.</p>
<p>They noted that tokenization could extend beyond public markets, offering new avenues for private assets to gain liquidity and broader investor access.</p>
<p>Separately, JPMorgan announced in November that its deposit token will launch on Base, Coinbase’s blockchain network, even though it does not directly use Coinbase’s institutional tokenization product.</p>
<h2 class="wp-block-heading" id="base-network-central-to-long-term-strategy">Base Network Central To Long-Term Strategy</h2>
<p>Coinbase launched Base, an <a href="https://www.cmegroup.com/education/courses/introduction-to-ether/defining-ether-and-ethereum.html" rel="noopener noreferrer nofollow">Ethereum</a> layer-2 scaling network, in 2023 and has increasingly positioned it as a core pillar of its infrastructure strategy.</p>
<p>The network already supports products such as Coinbase’s Bitcoin-backed lending offering and the Base app, expanding the company’s presence beyond exchange services.</p>
<p>The analysts suggested that a potential native token for Base could provide a significant financial upside for Coinbase if launched.</p>
<h2 class="wp-block-heading" id="potential-windfall-from-a-native-token">Potential Windfall From A Native Token</h2>
<p>“If a native currency debuts for Base, then the exchange itself would likely benefit,” the analysts wrote, describing the move as a possible windfall.</p>
<p>They added that while the token would mainly incentivize builders, creators, and early adopters, <a href="https://www.investors.com/research/coinbase-coin-stock/" rel="noopener noreferrer nofollow">Coinbase</a> would likely retain a portion of the proceeds.</p>
<p>“While part of the native token launch will go towards incentivizing COIN’s partners, COIN will keep some of the cash proceeds for itself,” they said.</p>
<p>“This could raise billions of dollars in cash given its current $5 billion in total value locked.”</p>
<h2 class="wp-block-heading" id="regulatory-clarity-could-influence-timing">Regulatory Clarity Could Influence Timing</h2>
<p>Coinbase has not confirmed plans to launch a Base token, though it said in September that the idea remains under consideration.</p>
<p>The company has not provided a timeline, and in 2023 it suggested that a token launch was unlikely at that time.</p>
<p>Bank of America analysts noted that progress on a U.S. crypto market structure bill could encourage Coinbase to revisit the idea as regulatory definitions become clearer.</p>
<h2 class="wp-block-heading" id="competitive-risks-remain">Competitive Risks Remain</h2>
<p>Coinbase shares were trading around $248, up about 1% on the day, though still roughly 40% below their July high of $444.</p>
<p>The analysts pointed to increasing “product velocity” as a positive trend, but warned that competition remains a key risk.</p>
<p>They highlighted Binance’s renewed U.S. banking access as a potential threat, noting that greater regulatory alignment could strengthen Binance.US through deeper global liquidity.</p>
<p>The post <a href="https://londoninsider.co.uk/bank-of-america-upgrades-coinbase-on-tokenization-momentum-and-product-expansion/" rel="noopener noreferrer nofollow">Bank Of America Upgrades Coinbase On Tokenization Momentum And Product Expansion</a> appeared first on <a href="https://londoninsider.co.uk" rel="noopener noreferrer nofollow">London Insider News</a>.</p>

Bank Of America Upgrades Coinbase On Tokenization Momentum And Product Expansion

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