BofA Upgrades Coinbase to Buy on Base Growth, Tokenization Boost
Bank of America upgraded Coinbase to a Buy rating, pointing to accelerating activity on its Base layer and rising tokenization as key drivers for trading, custody and fees revenue. BofA highlighted Base's user and transaction growth — Coinbase's Layer 2 network — and said tokenized assets could create new products and custody flows that benefit the exchange.
The bank tempered the upgrade with a warning that Binance's expansion in the U.S. market remains a meaningful competitive threat that could pressure margins and market share. The note matters because it frames infrastructure and tokenization as tangible revenue catalysts for exchanges; investors and industry watchers will be watching Base adoption, token issuance volumes, and Binance US moves while keeping an eye on the evolving regulatory backdrop.