JPMorgan upgrades Coinbase stock to overweight, signaling renewed optimism in the company’s direction and earnings potential. The decision follows a detailed analysis from JPMorgan’s research team highlighting how risks are beginning to ease while new monetization opportunities are starting to form. The move suggests that the bank now sees Coinbase as well-positioned among crypto industry peers, thanks to its growing role in blockchain infrastructure and stablecoin services.

JPMorgan’s Revised Outlook on Coinbase

In its latest report, JPMorgan raised Coinbase’s stock rating from Neutral to Overweight and lifted its price target from $342 to $404 for December 2026. Analyst Kenneth Worthington explained that this upgrade reflects the firm’s confidence in Coinbase’s evolving ecosystem and an “attractive valuation versus cryptocurrency peers”.

Worthington noted that risks once weighing on Coinbase, particularly from decentralized exchanges, are now easing. According to JPMorgan, market share between centralized and decentralized platforms has stabilized, creating space for Coinbase to focus on expansion instead of defense. This shift in sentiment is a meaningful change for a company often under pressure from regulatory uncertainty and industry volatility.

Emerging Growth Drivers

The report highlighted two areas that could meaningfully impact Coinbase’s long-term earnings power: the possible launch of a Base token and enhanced yield opportunities tied to USDC, the firm’s partnered stablecoin.

JPMorgan believes that the potential introduction of a Base token could accelerate development on Coinbase’s Base blockchain, already one of the largest Layer-2 networks by several metrics. The bank estimates this initiative could add between $4 billion and $12 billion in value for Coinbase, within a projected total market capitalization range of $12 billion to $34 billion.

Additionally, the report noted that Coinbase is “experimenting with yields on USDC” through segmentation of customers and the promotion of Coinbase One, its subscription service. By differentiating yields among user groups, Coinbase could add as much as $1 per share in annual earnings, according to Worthington.

Related read: Coinbase CEO in DC for Crypto Regulation Talks Gains Momentum

Easing Risks and Strengthening Fundamentals

Beyond these specific growth initiatives, JPMorgan emphasized that overall risk levels are improving. The competitive gap between centralized exchanges and decentralized platforms has steadied, allowing Coinbase to retain a strong position in the market.

The report also underlined Coinbase’s integrated model, combining brokerage, custody, and exchange services, as a stabilizing factor. This vertical structure continues to support profitability even as traditional equity brokers in the U.S. move toward zero trading fees.

JPMorgan’s view suggests that Coinbase’s diversified operations may help balance short-term volatility with longer-term structural growth. While the analyst’s projections remain forward-looking, the upgrade points to increasing confidence that Coinbase’s strategies could sustain earnings growth beyond 2025.

Also read: Mainland-Hong Kong Crypto Collaboration Strengthens

What the Upgrade Means Going Forward

The decision by JPMorgan to upgrade Coinbase stock to overweight reflects a cautious yet optimistic stance toward the exchange’s role in the digital asset ecosystem. Although the future of its Base token and yield initiatives is still unfolding, the analysis indicates growing confidence in Coinbase’s ability to expand revenue beyond traditional trading.

In the broader context, this marks another step toward mainstream financial institutions recognizing blockchain-linked business models as viable long-term plays. While challenges like regulation and market competition remain, JPMorgan’s assessment suggests that Coinbase’s integrated structure and innovation roadmap provide a stronger foundation than before.