Coinbase Shares Surge on Year-End System Update and Ambitious Expansion Plans
On December 18, 2025, Coinbase announced a comprehensive year-end System Update that includes broad expansion across U.S. equity trading, AI-powered tools, tokenization, and stablecoin infrastructure.
Following the announcement, Coinbase shares rose up to 4.6%, reaching an intraday high of $255.41 before settling around $249.48.
JPMorgan analysts have an overweight rating with a $244.19 price target, expecting the expansion to broaden asset classes and tools, expanding the total addressable market and enabling new subscription and transaction revenue streams. They noted developments in stablecoins and the Base App expansion.
Clear Street analyst Owen Lau described the update as a coordinated expansion toward a broader financial platform. He highlighted new features such as stock trading, an AI-powered advisor, potential tokenized equities, and equity futures offering up to 20x leverage. Lau also suggested that derivative offerings could reduce earnings volatility, assigning a Buy rating with a $415 price target.
Citi analysts, led by Peter Christiansen, set a $505 price target and described the Everything Exchange initiative as ambitious. They emphasized improvements in payments, developer tools, tokenization rails, and on-/off-chain integration aimed at deepening liquidity, while calling for clearer execution and regulatory certainty.
Barclays maintains an equal weight rating with a $291 price target.
The plan's key features include stablecoin USDC payments, new x402 payment methods, enhanced developer tools via the Coinbase Developer Platform (CDP), and on/off ramps designed to connect on-chain activity with traditional finance.
Coinbase's growth strategy focuses on tokenization rails and aims to position the platform as an operating system for on-chain activity.
As part of its expansion strategy, Coinbase previously announced a $2.9 billion acquisition of Deribit in May 2025.
