Coinbase Stock Surges on Bitcoin Loans, UBI Pilot, Regulatory Gains

Coinbase Stock Surges on Bitcoin-Backed Loans, USDC UBI Pilot, and Stablecoin Regulation Clarity

  • Coinbase shares climbed 7.45% to $371.97 due to multiple business and regulatory developments.
  • The company launched Bitcoin-backed loans, letting users borrow up to $1 million by pledging their Bitcoin holdings as collateral.
  • A new Universal Basic Income (UBI) pilot, using USDC stablecoin, highlights practical uses for digital currencies.
  • Efforts in the U.S. to clarify stablecoin regulations are fueling investor confidence and could boost stablecoin adoption.
  • Analysts set an average 12-month price target of $378.17, with Coinbase reporting $8.5 billion in revenue and $2.9 billion in net income.

Coinbase, the cryptocurrency exchange listed on NASDAQ, saw its stock price surge by 7.45% to $371.97. The company’s recent growth is supported by three major factors: the rollout of bitcoin-backed lending, a Universal Basic Income (UBI) pilot through USD Coin (USDC), and increased clarity regarding stablecoin regulation in the United States.

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The bitcoin-backed loan feature allows eligible users to borrow as much as $1 million without selling their Bitcoin, using their cryptocurrency as loan collateral. This service opens a new revenue stream for Coinbase and provides customers a way to access cash without triggering taxable events from selling digital assets. The program has already launched in multiple states and is experiencing strong demand.

In parallel, a UBI pilot launched by Worldcoin and USDC demonstrates new applications for stablecoins, moving beyond trading into direct payments to individuals. The project aims to deliver payments as part of a universal basic income trial, illustrating how digital dollars like USDC could be used for regular income distribution. According to company officials, these efforts align with growing calls in Congress to clarify legal frameworks for stablecoins, which could support more institutional adoption.

Improved visibility around stablecoin laws has been mentioned by Coinbase executives as an advantage for ongoing and future business. On the financial side, figures show the company has reached $8.5 billion in revenue and $2.9 billion in net income, according to The Motley Fool. Analyst forecasts compiled from 29 Wall Street sources set an average 12-month price target for Coinbase at $378.17, with ranges from $185 to $510.

Market watchers attribute the current surge in Coinbase stock to these specific business initiatives and regulatory shifts, not just market speculation. As crypto-backed lending, new payment pilots, and regulatory clarity evolve, Coinbase remains in the spotlight for investors. More details can be found in this Yahoo Finance coverage.

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