Coinbase Projected to Surpass Charles Schwab as World’s Most Valuable Brokerage

Coinbase, the popular cryptocurrency exchange, is projected to become the world’s most valuable brokerage, surpassing $7 trillion asset manager Charles Schwab. According to Bitwise, the issuer of a Bitcoin spot exchange-traded fund (ETF), Coinbase shares (COIN) in the U.S. stock market are expected to double to $700 next year, up from the current price of around $302.

Key Factors Driving Coinbase’s Growth

Several factors contribute to this bullish projection. The collaboration between Coinbase and USDC has had a positive impact on the company, resulting in $162 million in revenue, a 31% increase. This growth is expected to continue, with Bitwise noting that staking and custody services are also promising for the company’s future, generating $589 million in revenue.

Additionally, the launch of a new Layer 2 (L2) network named Base, built on the Ethereum blockchain, has been successful, with 131 transactions per second (TPS) and $12.9 billion in total value lock. This L2 project is expected to generate revenue of tens of millions of dollars every quarter as the capital and ecosystem grow.

“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.”

Coinbase’s Strategic Moves

Before this projection, Coinbase has made significant moves to expand its services. The company has agreed to integrate its on-ramp platform with Apple Pay, aiming to simplify and speed up transactions between fiat and crypto. This integration will allow 60 million Apple Pay users in the U.S. to easily convert currencies.

Coinbase executives also believe that stablecoins will have better regulations next year, which could lead to significant growth for USDC. If this happens, USDC’s value is expected to increase multiple times in the future.

Charles Schwab’s Response

Charles Schwab has also taken notice of the growing importance of digital assets and has entered the crypto spot market. This move reflects the increasing recognition of cryptocurrencies as a legitimate investment option.

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