Morgan Stanley Sets $250 Target on Coinbase

Morgan Stanley initiated coverage of Coinbase Global with an Equal Weight rating. The firm set a price target of $250 for the stock. This is the bank’s first formal assessment since the exchange went public. The move signals a shift in how Wall Street views the company. It now sees Coinbase as broader financial infrastructure rather than a single-asset broker.

The bank argues that Coinbase’s expansion creates a larger addressable market. The company is moving into equities, commodities, and prediction markets. It also offers pre-IPO exposure and tokenized assets. These additions reduce reliance on a single trading cycle. The firm positions Coinbase across the infrastructure layer of digital finance.

Diversification drives the investment thesis

Coinbase has rolled out products that support this broader vision. On June 16, it launched tokenized stocks for non-U.S. customers. The company also added stock and crypto options. Prediction-market products and pre-IPO perpetuals are now available. A unified interface combines traditional and digital assets in one place.

Financial results reflect this strategic shift. Q2 crypto trading market share hit a record 10.3%. Prediction-market contracts and revenue climbed 106% from the previous quarter. Subscription and services revenue reached $555 million. This segment accounted for 48% of net revenue. The data shows a move away from pure trading volume dependence.

Revenue mix moves away from Bitcoin

Morgan Stanley highlights a key metric in its thesis. 88% of Coinbase’s second-quarter net revenue came from sources other than Bitcoin spot trading. This indicates a structural change in the business model. The company is less tied to one crypto trading cycle. It operates as a multi-asset financial platform now.

The firm sees Coinbase positioned at the convergence of crypto and traditional finance. The exchange is building a network for custody, financing, and payments. Its Base layer supports onchain markets. This infrastructure role is central to the valuation argument. It differentiates Coinbase from standalone spot trading platforms.

Regulatory filing expands product lineup

Coinbase continues to enter markets dominated by traditional brokerages. On Sept. 3, the company filed with the U.S. SEC. It seeks approval to offer equity perpetuals. These are derivative contracts that track stocks without expiring. Chief Policy Officer Faryar Shirzad confirmed the filing. This move extends the company’s reach into derivatives.

The strategy aligns with the broader trend of asset convergence. Digital assets are integrating with traditional financial products. Coinbase aims to capture this transition. The company’s product suite now spans multiple asset classes. This breadth supports the case for broader institutional coverage. The $250 target reflects this expanded scope. GN markets/crypto (en-US) reports on these developments. The shift marks a new era for major crypto exchanges.