Coinbase to Grow Crypto Custody Business With OCC Application?

Core Insights - Coinbase Global Inc. (COIN) is focusing on becoming the industry's premier "everything exchange" by applying for a charter with the Office of the Comptroller of the Currency to enhance its crypto custody business [1][7] - If approved, COIN will be able to offer custody and banking services nationwide, which could lead to increased institutional adoption [2] - The company is diversifying its offerings through initiatives like the Base network and unique equity index futures, while also exploring the launch of a network token [2][3] Company Developments - COIN is pursuing strategic moves to accelerate trading activities and amplify revenues, including strengthening banking relationships and introducing customized products [3] - The company has gained 56% year-to-date in stock performance, outperforming the industry [6] - COIN's current price-to-earnings ratio is 64.33, significantly above the industry average of 24.72, indicating an expensive valuation [9] Financial Estimates - The Zacks Consensus Estimate for COIN's third-quarter and fourth-quarter 2025 EPS has remained stable, while the full-year estimates for 2025 and 2026 have seen a slight decline of 1 cent each [11][12] - Revenue estimates for 2025 and 2026 indicate year-over-year increases, contrasting with the expected decline in EPS for the same periods [12] Competitive Landscape - Robinhood Market (HOOD) is diversifying its product base to attract new clients, including the launch of prediction markets and tokenized stocks [4] - Circle Internet Group (CRCL) plans to launch a Layer-1 blockchain called Arc, aimed at enhancing the applications of USDC and driving long-term revenue growth [5]