Bank of America (BofA) has shifted its stance on Coinbase (COIN), upgrading the stock from “Neutral” to “Buy.” The upgrade reflects a growing Wall Street conviction that Coinbase is successfully pivoting from a retail-dependent exchange to a critical piece of global financial infrastructure.
The Base Network Catalyst
A primary driver for the upgrade is the Base network, Coinbase’s Ethereum Layer-2 solution. With over $5 billion in Total Value Locked (TVL), Base has become a central hub for on-chain activity. Analysts suggest that the potential launch of a native token for Base—while not yet confirmed by the company—could act as a multi-billion dollar “windfall” for Coinbase, while simultaneously accelerating the network’s decentralization and developer incentives.
The timing of such a move may hinge on the U.S. crypto market structure bill, which faces a key markup vote next week. Clearer regulatory definitions between securities and commodities would provide the legal green light Coinbase needs to monetize its infrastructure more aggressively.
Capturing the Tokenization Wave
BofA also highlighted the launch of Coinbase Tokenize, a dedicated platform for real-world asset (RWA) tokenization. By offering a “one-stop shop” that handles issuance, compliance, and custody, Coinbase is positioning itself to lead the migration of traditional assets—like Treasuries, private equity, and real estate—onto the blockchain. This institutional shift is already visible, with JPMorgan recently announcing the extension of its JPM Coin to the Base network.
Competitive Risks: The Shadow of Binance.US
Despite the bullish outlook and a $340 price target, BofA issued a warning regarding Binance.US. After successfully restoring its banking relationships in early 2025, the U.S. affiliate of the global giant is showing signs of renewed life. Analysts noted that if regulatory oversight harmonizes globally, Binance.US could leverage its superior liquidity and lower fee structures to challenge Coinbase’s domestic dominance.
