In a comprehensive 84-page research report, Cantor Fitzgerald has initiated coverage of Coinbase (COIN) with an "Overweight" rating and set a price target of $245, significantly above its current trading level. Analysts Brett Knoblauch and Thomas Shinske argue that Wall Street is underestimating the strategic value of two critical growth engines: Coinbase’s deep involvement with the USDC stablecoin and its rapidly expanding Base layer-2 network.
These assets, the report emphasizes, are transforming Coinbase from a cyclical crypto trading platform into a foundational pillar of the broader crypto economy.
From Trading Platform to Crypto Infrastructure Powerhouse
Historically, Coinbase has been viewed primarily as a centralized exchange where users buy and sell digital assets. In 2024, transaction fees from its core trading platform generated $3.9 billion in revenue, according to SEC filings. However, Cantor Fitzgerald highlights a pivotal shift: the company is evolving into a mission-critical infrastructure provider.
👉 Discover how emerging crypto networks are reshaping digital finance.
Two key drivers are fueling this transformation:
- Stablecoin revenue via USDC
- Growth of the Base layer-2 blockchain
Both are not only diversifying Coinbase’s income streams but also positioning it at the heart of real-world crypto adoption.
The USDC Advantage: A Lucrative and Scalable Revenue Stream
Coinbase maintains a strategic partnership with Circle, the issuer of USDC, one of the largest dollar-pegged stablecoins with over $60 billion in circulation. Under a private commercial agreement, Coinbase earns a share of the interest generated from USDC reserves—specifically:
- 100% of interest on USDC held directly on Coinbase’s platform
- 50% of interest on USDC held elsewhere, shared with Circle
In 2024, stablecoin-related revenue reached **$910 million**, up from $694 million in 2023—a year-over-year increase of over 30%. This isn’t just incremental income; it’s a scalable, high-margin business tied directly to adoption.
As more users hold USDC on Coinbase—whether for trading, saving, or using in decentralized applications (dApps)—the company’s cut of reserve interest grows proportionally. With stablecoin legislation like the proposed Stablecoin Transparency Act potentially paving the way for nationwide regulatory clarity, USDC’s expansion could accelerate.
Cantor Fitzgerald projects that if the global stablecoin market exceeds $2 trillion by 2035, Coinbase’s stablecoin revenue could grow 5 to 10 times its current level—assuming favorable bond market conditions and continued market dominance by USDC.
Base: The Layer-2 Powerhouse Driving Developer Adoption
Launched in Q3 2023, Base is Coinbase’s Ethereum layer-2 scaling solution designed to offer fast, low-cost transactions while maintaining Ethereum’s security. It’s quickly becoming one of the most active ecosystems in crypto.
Over the past 30 days alone, Base has recorded 17 million active addresses, far surpassing competitors like Arbitrum (5.3 million) during the same period, according to analytics platform GrowThePie. This surge in activity isn’t accidental—it’s driven by seamless integration with Coinbase’s massive user base.
Because users can move funds between Coinbase and Base with minimal friction, the network benefits from a powerful flywheel effect:
- More users → attract more developers
- More developers → build more dApps
- More dApps → drive more transactions and engagement
Coinbase operates the sequencer for Base—the node responsible for ordering and bundling transactions before posting them to Ethereum. This role generates direct revenue. In Q4 2024, Coinbase reported $68 million in “other transaction revenue,” largely attributed to sequencer fees on Base.
This infrastructure role gives Coinbase recurring income independent of volatile crypto trading volumes—a major shift in its business model.
Tokenization: The Next Frontier for Asset Growth
Beyond payments and DeFi, Cantor Fitzgerald sees long-term potential in tokenization—the process of representing real-world assets (RWAs) like stocks, bonds, and real estate as blockchain-based tokens.
A McKinsey report estimates that the market for tokenized assets could reach $2 trillion by 2030. While the SEC previously blocked Coinbase’s attempt to launch a tokenized securities platform in 2020, the company has re-engaged with regulators. CFO Alexia Haas confirmed in March that discussions about tokenization are ongoing.
If regulatory hurdles ease, Base could become a primary network for issuing and trading tokenized assets—further increasing the value locked (TVL) and transaction volume on the network.
👉 Explore how blockchain is enabling the next wave of financial innovation.
Market Performance and Investor Sentiment
Despite strong fundamentals, COIN stock has underperformed in 2025, trading around $150—down 38% year-to-date. The recent dip follows broader market volatility linked to macroeconomic concerns, including escalating trade tensions.
Although shares surged after former President Donald Trump’s election win in November 2024, those gains have since reversed. At current levels, Cantor Fitzgerald sees significant upside potential, especially as Wall Street begins to price in the value of Base and USDC-related revenue streams.
With a $245 price target, the analysts imply over 60% upside from current prices—contingent on sustained user growth, regulatory progress, and continued innovation on Base.
Frequently Asked Questions (FAQ)
Why is Cantor Fitzgerald bullish on Coinbase?
Cantor Fitzgerald believes Coinbase is transitioning from a speculative trading venue to a core infrastructure player through its ownership stake in USDC and control of the Base network—both high-growth, scalable businesses with recurring revenue models.
How does Coinbase make money from USDC?
Coinbase earns interest income from USDC reserves: 100% on USDC held on its platform and 50% on USDC held elsewhere, shared with Circle. As USDC adoption grows, so does Coinbase’s revenue.
What is Base, and why is it important?
Base is an Ethereum layer-2 blockchain developed by Coinbase. It reduces transaction costs and increases speed, making it ideal for apps and everyday use. Its rapid user growth creates network effects that benefit Coinbase through sequencer fees and ecosystem control.
Could regulation hurt Coinbase’s stablecoin or tokenization plans?
While regulatory risk exists, pending stablecoin legislation could actually benefit Circle and USDC by creating a clear legal framework. Coinbase is actively engaging with regulators on tokenization, suggesting a path toward compliance.
How does Base compare to other layer-2 networks?
Base ranks among the most active layer-2 chains by user count, recently outpacing Arbitrum with 17 million active addresses in 30 days. Its integration with Coinbase’s exchange gives it a unique distribution advantage.
Is now a good time to invest in Coinbase stock?
Based on Cantor Fitzgerald’s analysis, yes—especially for long-term investors. With COIN trading below $155 and a $245 price target reflecting strong growth potential in stablecoins and Base, the risk-reward profile appears favorable.
👉 Learn how leading platforms are integrating blockchain into mainstream finance.
Conclusion
Wall Street may still be sleeping on Coinbase’s transformation—but the data tells a different story. With USDC solidifying its position as a dominant stablecoin and Base emerging as a top-tier layer-2 network, Coinbase is building durable, high-margin businesses beyond trading fees.
As tokenization gains traction and regulatory clarity improves, these infrastructure assets could unlock massive value. For investors looking beyond short-term volatility, Coinbase represents a strategic bet on the future of digital finance.
Core Keywords: Coinbase stock, USDC stablecoin, Base layer-2 network, crypto infrastructure, stablecoin revenue, Ethereum scaling, tokenized assets, blockchain adoption