Is Coinbase Partnering Big Banks to Power Next-Gen Crypto Services?

Core Insights - Coinbase Global (COIN) is actively engaging with major U.S. banks to pilot programs focused on stablecoins, custody, and trading, aiming to diversify its revenue streams and reduce reliance on volatile trading revenues [1][7] Group 1: Partnerships and Initiatives - COIN has previously collaborated with JPMorgan, Citi, and PNC Bank to enhance digital asset services, including payment capabilities and secure access to digital assets [2][7] - The favorable regulatory environment and growing acceptance of digital assets as banking services are seen as supportive factors for COIN's latest initiatives [4] Group 2: Financial Performance - COIN's shares have increased by 10.7% year to date, outperforming the industry average [6] - The current price-to-earnings ratio for COIN is 44.93, significantly higher than the industry average of 24.32, indicating an expensive valuation [8] Group 3: Earnings Estimates - The Zacks Consensus Estimate for COIN's fourth-quarter 2025 and first-quarter 2026 EPS remains unchanged, with full-year estimates for 2025 showing an increase and a decline projected for 2026 [9][10]