Paul Johnson Bank of America upgrades Coinbase to buy, joining Goldman Sachs in seeing major growth potential as the exchange expands into real world asset tokenization and onchain finance.
Coinbase stock gains fresh momentum with major Wall Street upgrades
Coinbase is back in the spotlight as Bank of America has lifted its rating on the crypto exchange, predicting the stock could climb nearly 38 percent from its current level. The move comes just days after Goldman Sachs issued a similar upgrade, making this the second bullish call on Coinbase stock in less than a week.
Bank of America’s new assessment marks a shift in tone across traditional finance as analysts increasingly view Coinbase as a long term leader in the transition toward onchain markets. The bank highlighted that the company’s evolution from a pure trading platform into what it described as an “everything exchange” could unlock major new revenue streams.
Bank of America sees 38 percent upside as product growth accelerates
In its research note, Bank of America said Coinbase’s stock could rally to around 340 dollars as pressures from tax loss selling ease and short interest declines. Analysts emphasized that while the broader crypto market cooled in the final quarter of 2025, Coinbase quietly increased its product development pace and broadened its total addressable market.
The report pointed to Coinbase’s diversification beyond spot trading, highlighting new ventures in tokenizing real world assets such as equities, exchange traded funds, and prediction markets. This expansion, according to the bank, positions Coinbase to cross sell more services and deepen engagement with both retail and institutional clients.
Goldman Sachs issued a similar view earlier this week, calling the current pullback in crypto stocks a temporary reset that could pave the way for a strong rebound. With two of the largest American banks now backing Coinbase, optimism is mounting that the exchange could benefit from renewed investor appetite for regulated digital asset exposure.
Coinbase’s evolving roadmap toward the “everything exchange”
Bank of America’s note described Coinbase’s strategy as one of the most ambitious in the digital asset sector. The company is building a comprehensive ecosystem that spans trading, staking, asset tokenization, and decentralized finance access through its Base network.
Analysts said that if Coinbase eventually launches a native token for its Ethereum layer two Base network, it could become a major growth catalyst by attracting developers and driving new liquidity onchain. While no official token plans have been announced, the speculation reflects growing confidence in Coinbase’s ability to capitalize on the shift to decentralized financial infrastructure.
The report also noted that Coinbase’s steady expansion in compliance and institutional partnerships gives it a clear advantage over unregulated rivals. Its reputation as the most trusted US exchange continues to attract corporate partners looking for a safe entry point into digital asset markets.
Political support and global trends strengthen Coinbase outlook
Adding to the bullish sentiment, Bank of America referenced the supportive stance of President Donald Trump, who has pledged to make the United States the global leader in crypto innovation. With three years remaining in his term, analysts expect regulatory clarity and capital market integration to accelerate, benefiting exchanges like Coinbase that already operate under strict oversight.
Coinbase’s Base network, built to support onchain applications, is seen as a key piece of this puzzle. A potential Base token could raise billions in liquidity, fueling development across decentralized apps and prediction markets. This would reinforce Coinbase’s central role in the move toward a tokenized financial system.
However, the report also outlined potential risks, including Binance’s possible reentry into the US market and ongoing crypto price volatility. These factors could moderate Coinbase’s stock performance in 2026, though analysts stressed that the company’s diversified model provides a buffer against cyclical swings.
Market volatility offers opportunity for long term investors
Coinbase shares have seen sharp price swings throughout 2025, trading between 151 dollars and 419 dollars before settling near 245 dollars. The wide range underscores the volatility of the crypto sector but also highlights the potential for significant upside when sentiment improves.
With its growing suite of services, from institutional custody to real world asset tokenization, Coinbase is positioning itself as the bridge between traditional finance and decentralized markets. Analysts now see the company as a central player in shaping the next era of digital capital flows.
As 2026 unfolds, the combination of product innovation, political support, and major Wall Street backing is giving Coinbase investors a new reason to stay optimistic. If Bank of America’s 38 percent upside projection materializes, it could mark the start of a broader revaluation for the entire crypto exchange sector.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
