Coinbase's On-Chain Gambit Aims to Reshape Startup Capital Markets

Coinbase Global Inc. (COIN) is accelerating its vision to transform the financial landscape by leveraging blockchain technology to enable startups to bypass traditional stock markets through on-chain fundraising. The crypto exchange's recent $375 million acquisition of Echo, a platform specializing in on-chain investment and fundraising, underscores its commitment to building infrastructure for tokenized securities and community-driven capital formation, according to a Simply Wall St. report. This marks Coinbase's eighth acquisition in 2025 and signals a strategic pivot toward regulated digital asset funding, positioning the company to compete with legacy financial systems.

At the heart of Coinbase's strategy is its Ethereum-based Layer 2 blockchain, Base, which has grown into a $5 billion DeFi ecosystem. JPMorgan analysts recently estimated that a potential native Base token could unlock $12 billion to $34 billion in value for Coinbase, with the company retaining 40% of the supply—translating to $4 billion to $12 billion in equity value. Such a token would allow Coinbase to "equitize" the success of its network, capturing value from the decentralized applications and transactions processed on Base. This aligns with broader efforts to diversify revenue streams beyond volatile trading, including initiatives like the Coinbase US Bitcoin Yield Fund for accredited investors.

The potential disruption of traditional capital markets is further amplified by Coinbase's integration of decentralized exchange (DEX) capabilities into its Base app. By aggregating DEX liquidity, Coinbase aims to mitigate competition from decentralized trading platforms and offer users access to millions of assets, moving beyond its current catalog of hundreds. "We're transitioning from one asset to every asset onchain," said Max Branzburg, Coinbase's head of consumer and business products. This shift could enable startups to raise capital directly via token sales on Coinbase's infrastructure, reducing reliance on traditional IPOs or venture capital.

LiveBitcoinNews reported that JPMorgan's bullish outlook on Coinbase's stock—raising its price target to $404 by December 2026—hinges on these innovations. The analysts highlighted that a Base token, coupled with reduced rewards for non-premium users and a focus on Coinbase One subscribers, could boost annual earnings by up to $1 per share. Meanwhile, the waning threat of DEXes and improved monetization of USDC rewards further strengthen Coinbase's growth narrative.

Coinbase's expansion into on-chain fundraising also aligns with a broader surge in crypto venture capital. In October 2025 alone, crypto VC funding reached $587 million across 22 projects, including Echo's acquisition and Pave Bank's $39 million Series A round, according to crypto.news. A GlobeNewswire release also detailed Poain BlockEnergy's global expansion as it capitalizes on token pre-sales and staking to bridge traditional and decentralized finance. These developments highlight a growing ecosystem where startups can access global liquidity pools and institutional investors without intermediaries.

Critics, however, caution that regulatory uncertainties and market volatility remain risks. The recent collapse of Figure's Heloc token—a real-world asset token tied to home equity loans—exposed vulnerabilities in tokenized assets, as Coinotag reported. Yet, Coinbase's regulated approach to token sales and its alignment with evolving frameworks, such as the GENIUS Act, position it as a key player in shaping the future of capital formation.

As Coinbase continues to integrate DeFi tools and expand its tokenized infrastructure, the line between traditional finance and blockchain-based markets blurs. With JPMorgan projecting a $34 billion valuation for Base and the company's aggressive M&A strategy, the question is no longer whether Coinbase can replace the stock market—but how quickly it will get there, as noted in a Coindoo article.

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Why Coinbase (COIN) Is Up 5.5% After Acquiring Echo for Onchain Fundraising Expansion https://simplywall.st/stocks/us/diversified-financials/nasdaq-coin/coinbase-global/news/why-coinbase-coin-is-up-55-after-acquiring-echo-for-onchain/amp

Crypto VC funding: Coinbase acquires Echo for $375m, Pave Bank raises $39m https://crypto.news/crypto-vc-funding-coinbase-echo-for-375-million/

JPMorgan: $34bn Base token, waning DEX threat, could boost Coinbase stock https://finance.yahoo.com/news/jpmorgan-34bn-token-waning-dex-165154749.html

Coinbase's Base Network May Be Key to $34 Billion Growth, JPMorgan Predicts https://coindoo.com/coinbases-base-network-may-be-key-to-34-billion-growth-jpmorgan-predicts/

Poain BlockEnergy Announces Global Expansion to Strengthen Digital Asset and Token Pre-Sales https://www.globenewswire.com/news-release/2025/10/27/3174948/0/en/Poain-BlockEnergy-Announces-Global-Expansion-to-Strengthen-Digital-Asset-and-Token-Pre-Sales.html

DeFi Safer Yields Approach $10B as Heloc Token Crashes and Pro-Crypto CFTC Pick Emerges https://en.coinotag.com/defi-safer-yields-approach-10b-as-heloc-token-crashes-and-pro-crypto-cftc-pick-emerges/

Crypto News: JPMorgan Sees $34B Upside for Coinbase via Base Token Launch https://www.livebitcoinnews.com/crypto-news-jpmorgan-sees-34b-upside-for-coinbase-via-base-token-launch/