Is Wall Street Missing the Boat on Coinbase's Stablecoin Revolution?

Coinbase Company Overview
Zacks Rank #3 stock Coinbase Global (
COIN
) operates the largest cryptocurrency platform in the United States, supporting over 200 digital assets like Ethereum and Bitcoin. Coinbase handles the most trading volume of any US-based exchange platform. It offers consumers its primary account for the crypto economy, an institutional full-service prime brokerage platform (with deep pools of liquidity across the crypto market and a suite of products in the digital asset ecosystem. The company currently benefits from higher transaction volumes as more of the public adopts crypto.
GENIUS Act Will Provide Regulatory Clarity, Drive Growth
Stablecoins are digital assets that are built to maintain a stable value relative to a relatively 'stable' asset like the US dollar. Though Coinbase's stablecoin business is often overlooked by Wall Street investors and analysts, it is rapidly becoming an integral part of its booming business. In Q1, stablecoin revenue from the USDC stablecoin, the second-largest stablecoin in the world, shot to roughly $300 million, comprising ~15% of the company's total revenue. The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) is a landmark legislation that will seek to regulate the burgeoning stablecoin market in the US. The act recently passed the US Senate in a bipartisan manner and is expected to pass when it moves to the US House of Representatives. If and when the act passes, it will lend credibility to the market, drive institutional demand, and spur adoptions from ordinary crypto users.
Why is the Stablecoin Business so Exciting?
Stablecoins allow users to send money faster and cheaper and provide more ease for international transactions. In addition, stablecoin holders can 'stake' their holdings to earn rewards on their stablecoins without trading. Last year, stablecoins went mainstream and were responsible for more than two times the transaction volume of credit card juggernaut Visa (
V
). Meanwhile, Tether, the company behind the USDT stablecoin, is the most profitable company in the world per employee, generating $14 billion in profit last year with only 150 employees.
Coinbase/Circle Group Valuation is Dislocated
Coinbase is partnered with stablecoinoperator Circle Internet Group (
CRCL
) and receives half the revenue generated from USDC. CRCL is one of the hottest IPOs this year, with shares more than doubling since its debut last month.
However, investors may want to pay close attention to a major market dislocation. Though Circle derives all its revenue from USDC, USDC revenue only represents 14% of COIN's business. Nevertheless, CRCL currently enjoys a market cap of ~$50 billion while COIN's is only $87 billion. In other words, investors are vastly undervaluing Coinbase's core crypto exchange business.
Coinbase: Analyzing the Long-term Technicals, Volume & Fibonacci Levels
COIN shares are on the precipice of emerging from a year-long base structure. As the old Wall Street adage goes, 'The longer the base, the higher in space.' The Fibonacci extension levels agree and suggest that if the breakout is successful, COIN could be a $500 stock in 2026. In addition, the massive volume 'skyscrapers' suggest that institutional investors are rushing to buy shares.
Coinbase is a Cash Cow
Beyond the wonderful price action and the stablecoin catalyst, Coinbase offers investors a sparkling clean balance sheet. The company's cash hoard has grown consistently and has swelled to nearly $10 billion.
Bottom Line
Coinbase, the leading crypto exchange, is poised to capitalize on the burgeoning crypto economy, driven by increasing adoption and the often overlooked yet rapidly growing stablecoin business.
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U.S. consumer confidence weakens as tariffs create uncertainty over economy, job market

Globe and Mail

an hour ago

Globe and Mail

U.S. consumer confidence weakens as tariffs create uncertainty over economy, job market

U.S. consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labour market conditions were softening against the backdrop of rising economic uncertainty because of the Trump administration's tariffs. The ebb in confidence reported by the Conference Board on Tuesday was across all age cohorts and nearly all income groups. It was also across the political spectrum, with the largest decline among Republicans. Consumers remained preoccupied with the import duties and were mostly undecided on big-ticket purchases. There was a decline in the share expecting their incomes to increase, though perceptions of the current financial situation remained solid. The share of consumers viewing jobs as plentiful was the smallest since March 2021, aligning with the continued elevation in the number of people collecting unemployment checks as well as a moderation in job growth. 'Worry over prices in tandem with a diminished share of consumers who expect their household incomes to increase over the next six months points to still-elevated household financial anxieties,' said Tim Quinlan, a senior economist at Wells Fargo. 'Our forecast still calls for a stall in spending in the second half of this year. We have been making the case that what looks like resilience in retail spending in recent months may in fact be an indication of pulled-forward demand ahead of the full price impact of tariffs and that those outlays are apt to be curtailed in coming months.' The Conference Board's consumer confidence index dropped 5.4 points to 93.0 this month, erasing nearly half of the sharp gain in May. Economists polled by Reuters had forecast the index increasing to 100.0. The cutoff date for the survey was June 18, before the U.S. joined in the fray between Israel and Iran by bombing Tehran's nuclear facilities. U.S. President Donald Trump on Monday announced a ceasefire. The survey noted that 'references to geopolitics and social unrest increased slightly from previous months but remained much lower on the list of topics affecting consumers' views.' The share of consumers who viewed jobs as being 'plentiful' dropped to 29.2 per cent, the lowest since March, 2021, from 31.1 per cent in May. Some 18.1 per cent of consumers said jobs were 'hard to get,' down from 18.4 per cent last month. The survey's so-called labour market differential, derived from data on respondents' views on whether jobs are plentiful or hard to get, narrowed to a four-year low of 11.1 from 12.7 last month. This measure correlates to the unemployment rate in the Labor Department's monthly employment report. Economists said that, combined with high numbers of people on unemployment benefits, raised the risk that the jobless rate could rise to 4.3 per cent in June from 4.2 per cent in May. 'Given the concurrent rise in continuing jobless claims, it looks increasingly likely that the unemployment rate will rise to 4.3 per cent in next week's employment report,' said Abiel Reinhart, an economist at JPMorgan. Though consumers' one-year inflation expectations decreased to 6 per cent from 6.4 per cent in May, the share expecting interest rates to rise was the highest since October, 2023. Federal Reserve Chair Jerome Powell told lawmakers on Tuesday the U.S. central bank needed more time to gauge if tariffs pushed up inflation before considering lowering rates. The Fed last week left its benchmark overnight interest rate in the 4.25 per cent to 4.50 per cent range where it has been since December. Fed can wait to reduce rates, Powell says despite Trump's demand for cuts Stocks on Wall Street traded higher. The dollar fell against a basket of currencies. U.S. Treasury yields were lower. While consumers were unsure about big-ticket purchases over the next six months, they were less inclined to spend more on services, though spending intentions for dining out, motor vehicle services, visits to museums and historic sites as well as fitness activities rose. Vacation plans were unchanged, though more consumers planned to travel abroad. Plans to travel within the United States fell. Fewer consumers intended to buy a home, likely because of higher mortgage rates, which have combined with still-high house prices to reduce affordability. But house price inflation is slowing as weak demand boosts the supply of unsold homes on the market. A separate report from the Federal Housing Finance Agency showed single-family house prices fell 0.4 per cent in April, the first decline since August, 2022, after being unchanged in March. That lowered the annual increase to 3.0 per cent in April, the smallest rise since May, 2023, from 3.9 per cent in March. Economists do not expect an outright decline in house prices at a national level, though some individual markets could see sharp decreases. 'While the supply of homes for sale has increased, the housing market continues to suffer from a shortage of supply,' said Bernard Yaros, lead U.S. economist at Oxford Economics. 'However, some regions, mainly those that saw the biggest run-up in prices around the pandemic, may be at risk of a period of negative price growth, something already occurring in parts of Florida.'