Deutsche Bank recently assigned a 'buy' rating to the cryptocurrency exchange Coinbase for the first time, setting a target price of $340, implying an upside of about 40% from the current stock price level. The bank is optimistic about Coinbase's continued advancement of its 'one-stop trading platform' strategy and believes that the related layout is gradually moving from the conceptual stage to actual implementation.
Coinbase's management has been outlining this vision since the summer of this year, aiming to create a one-stop on-chain platform that allows users to trade cryptocurrencies, tokenized stocks, and various assets such as prediction markets within the same interface. Deutsche Bank pointed out that this strategy has now entered the execution phase, and as new products are launched, the market size that Coinbase can serve is expected to expand significantly in the coming years.
This rating release coincides with Coinbase's anticipated product launch event scheduled for later. According to a report by Zombit, Coinbase has officially announced products including prediction markets, stock trading, perpetual stock contracts, and tokenized stocks at the event. Deutsche Bank views these businesses as potential new growth engines and expects them to begin making substantial contributions to revenue as early as 2026, helping to reduce Coinbase's dependence on high-volatility, fee-driven spot cryptocurrency trading income.
Among multiple positive factors, the derivatives business is seen as a key driver. Deutsche Bank pointed out that Coinbase's recent acquisition of the cryptocurrency options exchange Deribit, along with the launch of 'perpetual contract' futures products regulated by the Commodity Futures Trading Commission (CFTC) in the United States, brings structural growth opportunities for the company, particularly in terms of institutional investors. The bank expects that as the market incentive structure gradually normalizes, the share of derivatives in overall trading volume and revenue will continue to increase.
Additionally, stablecoins and subscription services also constitute another pillar of Coinbase's long-term strategy. Deutsche Bank mentioned that the USDC balance on the Coinbase platform continues to rise, and the usage frequency of stablecoins in payments and on-chain applications is increasing, helping the company establish a more predictable source of recurring revenue and reduce the sensitivity of business performance to market trading activity.
Although 2025 is a relatively intensive year for Coinbase's investment spending, Deutsche Bank believes that the most concentrated investment phase for Coinbase is nearing its end. The bank expects that starting from 2026, the company's revenue growth rate will exceed the increase in costs, driving a moderate expansion of profit margins and pushing the adjusted EBITDA annual growth rate above 20%.
In terms of stock performance, Coinbase has recently declined as the momentum in the cryptocurrency market has slowed, with its stock price currently around $245, close to a seven-month low. Deutsche Bank noted that this correction has led the market to underestimate Coinbase's mid-to-long-term profit potential, and as the product line expansion gradually takes shape, there is room for the stock price to be re-evaluated.
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