Coinbase Wants a National Trust Charter. Should You Buy, Sell, or Hold COIN Stock Here?

Core Viewpoint - The crypto market's impressive rally has significantly boosted shares of Coinbase (COIN), indicating strong investor interest and potential for further growth [1][2]. Company Developments - Coinbase is seeking a national trust charter from the Office of the Comptroller of the Currency (OCC) to expand its custody business, which is a strategic move to enhance its operational capabilities [3][4]. - Obtaining this charter could allow Coinbase to operate as a federally regulated trust, potentially leading to substantial growth in its banking and custody services, which are becoming increasingly important for revenue generation [4][5]. Market Position and Growth Potential - The stock has shown a remarkable performance, nearly tripling for investors who bought near the April lows, reflecting the stock's sensitivity to bullish trends in the crypto market and strong institutional capital inflows [2]. - A successful charter application could stabilize Coinbase's earnings base, providing a more consistent revenue stream and enhancing the stock's long-term growth prospects [5][6]. Valuation Insights - Current valuation ratios suggest that the market is anticipating a slowdown in growth, particularly regarding earnings, indicating that some capital will be required to support Coinbase's growth initiatives, including the charter application [8].