Coinbase Is No Longer Just A Crypto Exchange - It's Becoming The AWS Of Finance

Sophos Research
81 Followers

Summary

  • Coinbase is evolving from a volatile crypto exchange to the default operating system for on-chain finance, with stable, recurring revenue streams.
  • The GENIUS Act provides regulatory clarity for stablecoins, unlocking a multi-trillion-dollar market where Coinbase already leads in custody and institutional adoption.
  • Coinbase’s Base Layer-2 and derivatives expansion creates diversified, high-margin revenue streams, making it a core infrastructure for digital finance.
  • Despite a strong rally, the market undervalues Coinbase’s growth, profitability, and premium valuation, which I believe is justified by its dominant position and future potential.

Bitcoin icon with blue light on microchip surrounded with icons of different world currencies on complex circuit board. International finance concept. 3D Illustration

alejomiranda

When most investors hear Coinbase (NASDAQ:COIN), they instinctively think “crypto exchange” or worse, a high beta Bitcoin proxy. But in my view, that perception is outdated, and it's costing the market a major re-rating opportunity. I believe Coinbase has become the default operating system

This article was written by

81 Followers
I’m Laura Bennett, the writer behind Sophos Research. I started my career as a software engineer at Amazon, where I spent over five years working on large-scale distributed systems and backend architecture. My background is deeply technical, and over the years, my writing on software infrastructure, AI systems, and cloud technologies has been featured in outlets like TechCrunch and other leading tech publications. In 2021, I developed a strong interest in the financial markets particularly the intersection of software, infrastructure, and capital allocation. I began studying financial reports the same way I would debug a complex system looking for patterns, understanding structure, and identifying the weak points others might overlook. Today, I work at a small tech firm that builds algorithmic trading platforms and low-latency infrastructure for institutional clients and hedge funds. That experience gives me a view into how markets function beneath the surface from data pipelines and execution engines to portfolio risk models. On Seeking Alpha, I focus on analyzing tech companies through a technical and fundamental lens. I write about enterprise software, cloud infrastructure, AI platforms, and the trading technology that powers modern finance.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of COIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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