Bank of America has raised its rating on Coinbase to “buy,” arguing that the exchange’s expanding slate of products is laying the foundation for a business that extends well beyond crypto trading.

In a research note published Thursday, BofA analyst Craig Siegenthaler said Coinbase (COIN) is increasingly positioning itself as an all-in-one financial platform — an “everything exchange” where users could trade equities, transact in digital assets, send payments, and access prediction markets through a single app.

The bank highlighted several initiatives unveiled at Coinbase’s December product showcase. These include plans to introduce 24/5 trading in U.S. stocks and ETFs linked to S&P 500 companies, launch equity perpetuals outside the U.S. in 2026, and add prediction markets via a partnership with Kalshi, a CFTC-regulated exchange.

Coinbase is also broadening its derivatives footprint. Earlier Thursday, the company said futures contracts tied to copper and platinum will begin trading on January 26.

BofA said the widening product offering should drive higher engagement while reducing the company’s dependence on crypto trading volumes, which remain closely tied to price swings in assets such as bitcoin BTC $90,630.47.

Beyond its core exchange, Coinbase is scaling Base, its Ethereum layer-2 network. While Base launched without a native token, management is now evaluating the introduction of one to promote decentralization and incentivize usage. BofA estimates a token issuance could raise billions of dollars and strengthen Coinbase’s push into decentralized finance.

Another strategic initiative is Coinbase Tokenize, a platform aimed at bringing real-world assets — including private equity and real estate — onto the blockchain. The offering targets asset managers seeking exposure to digitally native investors while benefiting from faster settlement and lower transaction costs.

Despite a roughly 40% drop in COIN shares from their July highs and elevated short interest, Bank of America reiterated a $340 price target, implying nearly 40% upside from current levels. The firm said Coinbase remains early in monetizing its broader ecosystem and continues to stand out as the most regulated and trusted crypto-native company in the U.S.

While near-term financial performance remains sensitive to crypto market volatility, BofA said the longer-term thesis centers on Coinbase’s transition from a trading venue into a full-service financial platform.