BofA Upgrades Coinbase, Eyes Base Token Amid Binance Threat.

Bank of America upgrades Coinbase to Buy, citing Coinbase Tokenize and a potential Base native token as growth catalysts despite Binance competition and shares ~40% below July highs.

  • Bank of America raised its rating on Coinbase to Buy from Neutral, keeping a $340 price target.
  • The analysts highlighted Coinbase Tokenize as a leading institutional tokenization product that bundles issuance, custody, and compliance.
  • They said a native token for Base could generate significant cash for Coinbase and help attract builders and users if U.S. legislation clarifies digital-asset rules.
  • “product velocity” at the exchange is rising, but the stock remains about 40% below its July high.
  • Analysts warned that expansion by Binance and its U.S. arm could pressure Coinbase through deeper liquidity and lower fees.

Bank of America analysts upgraded Coinbase to Buy from Neutral on Thursday, citing the company’s progress on tokenization and new product launches that could broaden revenue. They kept a $340 per share target and noted the upgrade after Coinbase unveiled several products last month. The analysts argued that tokenization and a possible native token for Base are central to the improved outlook.

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The note spotlighted Coinbase Tokenize, a product that offers asset managers issuance, custody, compliance, and access to Coinbase’s client base. Analysts said the offering positions Coinbase to help create markets and distribute tokenized stocks, ETFs, real estate, and private-company assets to both institutional and retail clients.

Coinbase launched the Ethereum layer-2 network Base in 2023 and has integrated it into products such as a Bitcoin-backed lending service and a Base app. The analysts suggested that if a native Base token debuts, it would mainly be used to incentivize builders, creators, and early users while boosting decentralization. They added that a token launch could raise large cash proceeds given Base’s roughly $5 billion in total value locked and noted, “While part of the native token launch will go towards incentivizing COIN’s partners, COIN will keep some of the cash proceeds for itself.”

Shares recently traded near $248, according to Yahoo Finance, about 40% below a July high near $444. The analysts also flagged competition risks: they warned that Binance and its U.S. affiliate could pressure Coinbase if regulatory alignment lets Binance tap global liquidity, offering lower fees and broader derivatives. On Monday, Goldman Sachs likewise upgraded Coinbase to Buy, citing its expansion into stock trading and other products.

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