Deutsche Bank just put a big spotlight on Coinbase, kicking off coverage with a Buy rating and a $340 price target. Why? Because the exchange isn’t just about crypto trading anymore, it’s starting to play the long game, building a broader on-chain financial ecosystem that could pay off big in the coming years.
Analysts at Deutsche Bank see Coinbase moving beyond its heavy reliance on retail trading. By expanding services for both retail and institutional clients, the company is lowering the risk of fee pressure from everyday trading, while creating new revenue streams across blockchain-powered products.
Coinbase’s ambition? To become an “everything exchange”. Think of it like a one-stop shop where you can trade crypto, use on-chain banking features, explore prediction markets, and even manage institutional crypto assets—all under one roof.
This strategy could help Coinbase tap into the growing bridge between traditional finance and decentralized finance (DeFi), while riding the wave of more users relying on on-chain platforms for payments, investing, and other financial services.
2025 is expected to be a heavy investment year. Deutsche Bank projects core expenses to rise over 20%, putting some pressure on profitability. Adjusted EBITDA could dip by more than 10% as Coinbase continues building out its new products. But here’s the kicker: the most intense phase of investment may already be behind them.
By 2026, as new products scale and revenue growth starts outpacing expenses, Coinbase could be positioned for modest EBITDA margin expansion assuming crypto markets remain supportive.
Deutsche Bank highlighted several key growth engines for Coinbase:
- Base App: powering new on-chain features for retail users
- Institutional services: catering to bigger crypto players
- On-chain retail banking: opening the door for payments and financial services
- Prediction markets: adding new trading opportunities
- Expanded crypto trading tools: enhancing the overall platform experience
The analysts see this broader platform strategy as a way to make Coinbase more resilient. Even if retail trading slows or market volatility hits, the company’s diversified offerings could help it keep growing and generating revenue across multiple fronts.
In short, Deutsche Bank is betting that Coinbase isn’t just riding the crypto wave it’s building the infrastructure to stay on top no matter how the market moves.
