Goldman Sachs has turned more optimistic on Coinbase Global Inc, arguing that the company now resembles a crypto infrastructure provider rather than a pure trading venue. The shift matters as revenue stability becomes more valuable in an industry known for sharp cycles. Consequently, the bank upgraded Coinbase to Buy from Neutral and set a higher price target, citing structural changes in how the firm earns money. Coinbase’s Business Mix Is Changing Trading activity still drives headlines in crypto markets. However, Coinbase has reduced its dependence on transaction fees tied to market swings. Significantly, subscription and services revenue has expanded from a minor contributor into a core pillar. That segment now accounts for roughly 40% of total revenue, compared with less than 5% five years ago. Besides offering trading, Coinbase now supports custody, staking, settlement, and compliance tools. These services earn fees regardless of daily price moves. Hence, revenue flows remain steadier during market downturns. Goldman argues that this predictability deserves a valuation premium compared with volume-driven trading models. Moreover, Coinbase operates at scale. The platform serves about 9.5 million monthly transacting users. It also safeguards close to $500 billion in customer assets. Additionally, the company controls nearly half of the U.S. crypto exchange market. Those figures give Coinbase leverage as institutions demand reliable infrastructure. Growth Drivers Extend Beyond Spot Trading Goldman expects Coinbase to outpace peers on revenue growth over the next several years. The bank points to expanding derivatives activity and new product launches. These include offerings linked to brokerage, banking, and wealth management. Consequently, Coinbase could capture revenue from both retail and institutional clients. Additionally, U.S. regulatory progress could favor established platforms. Coinbase already invests heavily in compliance systems. Hence, tighter rules may reinforce its competitive position rather than weaken it. Goldman set a price target of $303, implying roughly 34% upside from recent levels. The bank sees Coinbase as better positioned for long-term growth than exchanges reliant on trading spikes alone. Goldman Rebalances Its Crypto Preferences While upgrading Coinbase, Goldman Sachs downgraded eToro Group Ltd to Neutral. The bank cited rising competition, which could raise customer acquisition costs and pressure margins. Planned U.S. expansion may also face challenges. However, Goldman remains cautiously positive on crypto and brokerage stocks in 2026. It expects ongoing retail participation and gradual regulatory clarity. Moreover, it favors firms linked to infrastructure and emerging segments such as tokenization and prediction markets. Preferred Buy-rated names include Robinhood Markets Inc, Interactive Brokers, and FIGR.
