Coinbase Global, Inc. (NASDAQ:COIN) is one of the 14 Most Promising Fintech Stocks to Invest In. On December 12, CNBC reported that Coinbase Global, Inc. (NASDAQ:COIN) is getting ready to launch its in-house prediction market powered by Kalshi, based on a source close to the matter. This step will allow the company to strategically expand the asset classes available on its crypto exchange at a time when investors are shifting away from digital assets. The source noted that Coinbase Global, Inc. (NASDAQ:C ...

Key Takeaways COIN is in talks with top U.S. banks on pilot programs for stablecoins, custody, and trading services.These initiatives aim to diversify COIN's revenues and reduce dependence on trading volatility.Past COIN partnerships with JPMorgan, Citi, and PNC Bank support its "everything exchange" strategy.Coinbase Global (COIN) has always taken strategic steps to bring crypto and traditional banking closer. In its recent initiative, COIN has been engaged in discussions with the largest U.S. banks on pil ...

Core Viewpoint - Bernstein maintains a $510 price target for Coinbase, suggesting the company is transitioning into an "everything exchange" despite its current share price being significantly lower than historical highs [1][4]. Company Performance - Coinbase shares have declined approximately 11% over the past year and are down about 29% from their all-time peak, even as Bitcoin has surpassed $91,000 [2]. Market Context - Analysts describe the current market as "fragile," with volatility in crypto prices affecting equities linked to the crypto sector. However, they note that the current downturn does not exhibit the characteristics of previous crypto market crashes [3]. Business Evolution - The core of Bernstein's bullish thesis is Coinbase's ongoing efforts to diversify its revenue streams away from volatile spot trading, evolving into a full-stack financial platform that includes services traditionally associated with broker-dealers and fintech companies [4]. Revenue Diversification - Stablecoins are becoming a significant part of Coinbase's revenue mix, but investors often overlook ancillary business segments like custody, staking, and infrastructure fees, viewing them merely as extensions of crypto trading [5]. Regulatory Environment - Clearer regulatory guidelines in the U.S. are seen as a crucial factor that could enhance the valuation of Coinbase's ancillary business lines, allowing it to compete more effectively with offshore rivals [5]. Token Issuance Strategy - Coinbase is increasingly focusing on token issuance through a launchpad model, which could create a "flywheel" effect by linking issuance, listing, and trading activity [6]. Upcoming Developments - A key near-term catalyst for Coinbase is the product showcase scheduled for December 17, which is expected to introduce innovations in tokenized equities, prediction markets, and other tools aimed at expanding the platform's offerings beyond spot crypto trading [7].

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]