Bank of America Upgrades Coinbase to 'Buy' on Base Prospects, Tokenization Tailwinds

Bank of America analysts upgraded Coinbase Global (COIN) to 'Buy' from 'Neutral,' citing strong tokenization prospects and the potential growth of its Base blockchain network. The firm emphasized Coinbase's leadership in tokenization and the role its infrastructure could play in broader digital asset adoption. The upgrade aligns with broader industry trends toward blockchain-based financial services.

The firm's rationale includes the potential for Coinbase to launch a native token for Base, which could generate significant revenue through token incentives and cash proceeds. This would come as the U.S. crypto market structure bill moves closer to a key markup, providing clarity around asset classification.

Goldman Sachs also upgraded Coinbase to 'Buy' from 'Neutral,' highlighting the company's shift toward more stable, infrastructure-driven revenue streams such as custody, staking, and settlement. The firm praised Coinbase's expansion into traditional finance and its broader product suite, including stock trading and prediction markets.

Why Did the Upgrade Happen?

Bank of America analysts believe Coinbase is well-positioned to capitalize on a 'tokenization supercycle' in 2026. Stablecoin supply is expected to grow 56% year-over-year to $420 billion, driven by fintech giants like Block and PayPal. The firm also noted that Coinbase's tokenization product, Coinbase Tokenize, provides asset managers with issuance, custody, and compliance tools, giving the exchange a unique edge.

Coinbase's product velocity is increasing, with new offerings like commission-free trading, robo-advisors, and custom stablecoins expanding its revenue base. These products are less tied to short-term crypto price swings, making them more attractive for long-term investors.

How Did the Market React?

Coinbase shares rose 1% on the day of the upgrade, trading around $248. This followed a 4.1% gain in premarket trading after the Goldman Sachs upgrade. The stock remains about 40% below its July 2025 high of $444, but analysts see room for appreciation as Coinbase's infrastructure business grows.

The stock's performance has been mixed in 2026, with its P/E ratio currently at 21.38, relatively low compared to its projected earnings growth. The company also faces insider selling pressure, as CEO Brian Armstrong recently sold $9.9 million in COIN stock under a pre-arranged trading plan.

What Are Analysts Watching Next?

Analysts are closely watching whether Coinbase will launch a native token for its Base network. The firm noted that such a token could raise billions in cash for the company, given the $5 billion in total value locked on Base. A key factor is the U.S. crypto market structure bill, which could provide the regulatory clarity needed for a token launch.

Coinbase also faces competition from Binance's U.S. operations, which recently regained full access to bank accounts. If regulatory oversight becomes more harmonized globally, Binance could leverage its larger liquidity and lower fees to gain market share. Analysts see this as a potential risk to Coinbase's growth trajectory.

In parallel, other crypto players are expanding their offerings. Binance recently launched TradFi Perpetual Contracts settled in stablecoin, bridging traditional and crypto assets. Meanwhile, World Liberty Financial, a Trump-linked crypto venture, has applied for a U.S. banking license to issue and safeguard its USD1 stablecoin. These developments highlight the ongoing evolution of the crypto-finance landscape.