Coinbase (COIN) shares increased by up to 4.6% following the company’s announcement of a roadmap that includes plans for equity trading, AI-driven tools, tokenization, and stablecoin infrastructure in its upcoming System Update.
The stock reached a peak of $255.41 in early Thursday trading and was recently priced at $249.48 post-announcement on Wednesday.
According to J.P. Morgan’s Kenneth Worthington, the event illustrated Coinbase’s expansion through the introduction of diverse asset classes and tools aimed at user engagement. He emphasized the launch of U.S. equity trading, perpetual equity futures for non-U.S. users, and the Coinbase Advisor product as indicators of the company’s transformation.
He stated, “The Coinbase announcements last night showcased that it is offering its customers significantly more products to transact,” noting that this expansion “meaningfully increases” Coinbase’s total addressable market. Although details on revenue were limited, Worthington identified potential in both subscription and transaction-based models. He also recognized the rollout of branded stablecoins and Base App expansion as key steps toward long-term user commitment.
J.P. Morgan maintains an overweight rating for Coinbase with a price target of $244.19.
Read more: Coinbase rolls out stock trading, prediction markets and more in bid to become the ‘Everything Exchange’
Owen Lau, an analyst at Clear Street, shared a similar perspective, describing the update as a strategic product expansion that signals Coinbase’s shift from a crypto-exclusive exchange to a wider-ranging financial platform. He highlighted the addition of stock trading as a significant change, especially since the company had previously played down this concept. This development could foreshadow plans to introduce tokenized equities, Lau noted.
The launch of an AI-powered advisor also stood out. Lau pointed out that this could become an essential tool for simplifying investment decisions and boosting customer retention, particularly for novice users. He mentioned that features like direct deposits and crypto lending might help Coinbase establish itself as a primary financial account, although challenging traditional banks for paycheck deposits remains a hurdle.
Derivatives are still a crucial aspect of the growth strategy, Lau observed, referencing the introduction of equity futures with up to 20x leverage and continuous market access. Since derivatives typically create greater volume and revenue stability, Lau mentioned they could help mitigate 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 for Coinbase, projecting a price target of $415.
Citi analysts, led by Peter Christiansen, called the update a significant milestone that broadens access to both new and traditional assets while enhancing payment systems, developer tools, and tokenization structures that could improve liquidity in the long run.
The event reaffirmed Coinbase’s commitment to expanding access to a wider asset range, which “deepens the platform’s competitive moat,” the analysts led by Peter Christiansen remarked.
The analysts also highlighted payment and money-transfer capabilities associated with stablecoin USDC and newer x402 payments as developments toward diversifying revenue streams and enabling innovative use cases like agentic commerce.
Enhancements to Coinbase’s developer tools through CDP, along with efforts to integrate on-chain functionality with traditional finance via tokenization and on/off-ramps, support the company’s ambition of becoming an “operating system” for on-chain activities, the analysts stated.
Citi described Coinbase’s “Everything Exchange” strategy as ambitious and expressed that investors will require robust execution, including clearer disclosures on execution processes, coupled with stronger regulatory certainty to move beyond short-term volatility and focus on long-term opportunities.
The bank remains confident that the upside potential is too significant to overlook, continuing to see Coinbase’s leadership in the category strengthening, while maintaining a buy rating and a price target of $505.
Conversely, Barclays holds an equal weight rating on Coinbase with a price target of $291.
