BTIG Initiates Coverage on Coinbase Global with Buy Rating and $410 PT

BTIG Initiates Coverage on Coinbase Global with Buy Rating and $410 PT

BTIG, a leading global investment bank, has initiated coverage on Coinbase Global (COIN) with a "Buy" rating and a price target of $410. This move underscores the growing recognition of Coinbase's role in the cryptocurrency ecosystem and its strategic positioning within the DeFi sector.

According to BTIG's research, Coinbase's onchain loan originations have surged, reaching over $1 billion in just eight months since its launch in January. The company's use of the DeFi protocol Morpho to facilitate these loans has been instrumental in driving growth. Coinbase CEO Brian Armstrong has set a target of achieving $100 billion in onchain borrow originations, signaling the company's ambitious plans for expansion Coinbase tops $1 billion in bitcoin-backed onchain loans via Morpho^[1].

The success of Coinbase's onchain loans is a testament to the thriving onchain economy. By allowing users to borrow USDC against their bitcoin holdings without selling the underlying asset, Coinbase has created a unique value proposition. This service is particularly appealing to retail customers who seek to leverage their cryptocurrency holdings for additional liquidity.

In addition to its onchain loan services, Coinbase has been expanding its offerings. Earlier in September, the company rolled out a feature allowing users to lend their USDC onchain, offering yields of up to 10.8%. This move further cements Coinbase's position as a comprehensive platform for cryptocurrency users.

BTIG's decision to initiate coverage on Coinbase Global reflects the company's strong fundamentals and promising growth prospects. As the cryptocurrency market continues to evolve, Coinbase's strategic partnerships and innovative services position it as a key player in the industry. With a robust balance sheet and a growing user base, Coinbase is well-positioned to capitalize on the opportunities presented by the expanding onchain economy.