Coinbase, the leading cryptocurrency exchange, is projected to flip Charles Schwab, the $7 trillion asset manager, to become the world’s most valuable brokerage by 2025. This remarkable forecast is backed by various compelling factors that are reshaping the financial landscape.
According to Bitwise, a prominent Bitcoin spot exchange-traded fund (ETF) issuer, Coinbase shares (ticker: COIN) are expected to see their value more than double, reaching approximately $700 next year from its current trading price of around $302. This significant price boost places the exchange in a favorable position as it anticipates surpassing Schwab’s market valuation.
Bitwise reports, “Our prediction: Coinbase stock will trade above $700 per share in 2025 (more than doubling today’s price). That would make them the most valuable brokerage in the world, surpassing Charles Schwab. The reason? It is more than just a brokerage.” This growth potential can be attributed to Coinbase’s innovative strategies and evolving market presence.
Another promising aspect of Coinbase’s trajectory is its collaboration with USDC, which has resulted in a $162 million revenue boost, marking a 31% increase. The anticipated rise in revenue showcases the strength of stablecoin assets, especially as regulatory frameworks continue to evolve favorably for digital currencies.
Moreover, Coinbase has introduced a new Layer 2 (L2) network named Base, built on the Ethereum blockchain. Base currently leads in both transaction speed and total value locked, achieving 131 transactions per second (TPS) and boasting a valuation of $12.9 billion. This L2 network is expected to rake in tens of millions in quarterly revenue as its ecosystem expands further.
Additionally, Coinbase has successfully diversified its revenue streams through robust staking and custody services, generating about $589 million so far. Projections suggest that these services could escalate to an impressive $1 billion in revenue. As Charles Schwab explores entry into the crypto space, Coinbase’s innovative edge presents a competitive advantage.
As Coinbase gears up for future growth, strategic partnerships are being formed, including collaborations with major entities like Apple Pay. This agreement aims to enhance transaction efficiency, allowing Apple Pay users to seamlessly exchange fiat currency for crypto. With these integrations, Coinbase looks poised to attract a broader user base, especially as regulatory support for stablecoins is expected to strengthen next year.
In conclusion, the projection of Coinbase ascending as the world’s most valuable brokerage by surpassing Charles Schwab isn’t just speculation; it’s grounded in strategic initiatives, innovative technology, and rapidly evolving market dynamics. Investors and cryptocurrency enthusiasts alike should keep a keen eye on how these developments unfold in the coming years.
