Investment bank Benchmark has initiated coverage of Coinbase, giving it a buy rating with a price target of $252, indicating strong confidence in the company's potential to capitalize on the ongoing stablecoin boom. According to the firm, Coinbase could particularly benefit from forthcoming legislation aimed at stablecoin regulation, which is expected to provide a clearer path for issuers like Circle, the company behind USDC. The analysts highlighted that Coinbase's revenue from stablecoins reached $910 million in 2024, marking a 31% increase from the previous year. They believe that upcoming legislation could enhance Coinbase's income from USDC, especially if the market cap for USDC grows. Benchmark's analysis is supported by additional coverage from Cantor Fitzgerald, which echoed similar sentiments about Coinbase being well-positioned for stablecoin adoption and projected significant growth potential in this area. The broader context includes discussions about competition and legislative frameworks, with major financial institutions considering the launch of their own stablecoins to engage with the evolving crypto landscape.

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