Coinbase Expands Beyond Core Trading with Major Product Launch

Coinbase Global, Inc. is preparing for a significant strategic expansion with the imminent launch of two new product categories. This move aims to connect the cryptocurrency exchange directly with rapidly growing niches within the digital asset ecosystem. Investors are now weighing the potential of these new ventures—tokenized equities and prediction markets—against a share price that has retreated notably from recent highs.

The company is concurrently restructuring its operational model. A cornerstone of this effort is a newly finalized partnership with PNC Bank. The U.S. banking giant will leverage Coinbase's platform to offer institutional and private banking clients direct Bitcoin trading via a "Crypto-as-a-Service" framework. This collaboration provides Coinbase a channel to penetrate traditional finance more deeply without needing to operate as a full-service bank itself.

On the retail side, the company is adjusting its approach. Starting December 15, 2025, interest payments on USDC balances will be distributed exclusively to paying "Coinbase One" subscribers. Users of the free tier will no longer earn yield on their USDC holdings. This shift is designed to reduce per-customer operational costs and bolster the subscription business, though it may diminish the appeal of the free service offering.

December 17: A Pivotal Date for New Offerings

All eyes are on December 17, 2025, when Coinbase plans to debut its own prediction markets and tokenized stock offerings at a dedicated launch event. A critical detail for investors is that the tokenized equities will be structured and issued internally by Coinbase, not through external partners. The company intends this move to grant it greater control over compliance and capture a larger share of the associated value creation.

The target markets are demonstrating substantial growth. Data from rwa.xyz indicates the monthly transfer volume for tokenized equities recently surged 32% to $1.45 billion. Prediction markets, meanwhile, reached approximately $7.7 billion in volume during November. By entering these arenas, Coinbase will compete directly with established players like Kalshi, Polymarket, and Robinhood, positioning itself as an infrastructure provider for a broader spectrum of digital assets.

Technology and Global Initiatives

Technologically, Coinbase is advancing multiple projects in parallel:
* x402 V2 Protocol: An updated payment protocol for AI agents that integrates stablecoins and aims to enhance wallet-based identity.
* Solana Integration: Enabling direct on-chain trading of Solana tokens, with new SPL tokens becoming instantly tradable without traditional listing processes.
* Return to India: Preparations are underway for a renewed push into the Indian market, including a planned fiat on-ramp by 2026.

Should investors sell immediately? Or is it worth buying Coinbase?

These initiatives collectively aim to reposition Coinbase from a pure trading venue to an infrastructure layer supporting AI payments, new token ecosystems, and international market access.

Financial Health and Analyst Sentiment

Fundamentally, Coinbase's recent financials appear robust. Third-quarter revenue stood at $1.87 billion, significantly above the $1.21 billion reported in the same period last year. Net income reached $432.55 million, indicating the platform is generating substantially more from its existing operations even as it cultivates new revenue streams.

Despite this aggressive product and technology roadmap, analyst caution persists. On December 12, 2025, Craig Siegenthaler of Bank of America Securities reaffirmed his "Hold" rating on the stock but reduced the price target from $358 to $341. This adjustment continues to suggest potential upside from current levels but also reflects heightened wariness regarding execution risks.

Market sentiment has cooled recently. The share price, at around €230, sits roughly 36% below its 52-week peak after posting double-digit declines over the preceding 30 days. A Relative Strength Index (RSI) reading above 70 further points to a technically overbought or nervous trading environment characterized by high volatility.

The Road Ahead

The December 17 launch serves as a critical near-term test. Success will hinge on Coinbase's ability to introduce its new prediction markets and tokenized equities with technical stability, regulatory compliance, and sufficient user engagement. A smooth rollout would reinforce the narrative of the company's evolution from a cryptocurrency broker to a diversified financial infrastructure provider. Conversely, any weakness in demand or implementation could prompt investors to focus more intently on the proven profitability of the core trading business and scrutinize the ambitious expansion more critically.