Back to top

Image: Shutterstock

Coinbase to Operate in India Again: Time to Buy the Stock?

Read MoreHide Full Article

Coinbase Inc. (COIN - Free Report) is set to operate in India again. Recently, this crypto leader registered with Financial Intelligence Unit (FIU), India’s financial regulatory authority. This indicates COIN’s efforts to continue its international expansion. Coinbase now can legally offer crypto trading services in India. 

India – Emerging Global Technology Powerhouse

Coinbase noted that India has rapidly grown into an onchain development hub, with its share of global developers increasing to 12% in 2023 from 3% in 2018. Among emerging markets, India now boasts the highest concentration of talent in the onchain space.

COIN intends to launch initial retail services later this year, followed by additional investment and products in India thereafter. John O'Loghlen, regional managing director for APAC at Coinbase, stated ‘‘India represents one of the most exciting market opportunities in the world today, and we’re proud to deepen our investment here in full compliance with local regulations.”

COIN operated in India earlier but exited in 2022, as the National Payments Corporation of India restricted its services then.

COIN’s Other International Expansion

As part of international expansion strategy, this January, COIN obtained Virtual Asset Service Provider (VASP) registration from Argentina's National Securities Commission. The crypto leader can now operate legally in Argentina. 

Expanding the Utility of Crypto

COIN has prioritized crypto utility and envisions bringing 1 billion or more people on the crypto rail. It is thus heavily investing in infrastructure and foundational platforms like Layer 2s, Base and Stablecoins. COIN partnered with Stripe to enhance the global adoption of crypto. 

In an effort to simplify onchain access, COIN launched smart wallets, a major advancement in self-custodial wallets. These wallets reduce the friction typically associated with crypto by simplifying the setup process, eliminating network fees and removing the need for recovery phrases. With multi-chain support and easy integration with major applications, smart wallets bear the potential to make on-chain activities smoother. This innovation paves the way for broader on-chain adoption, making it more accessible and efficient for everyone.

COIN: A Must-Have Stock in Your Portfolio?

America's largest registered crypto exchange is set to benefit from higher crypto asset volatility and prices. Trump’s pro-crypto inclination and focus on regulatory clarity further benefit Coinbase and the broader crypto economy. 

COIN is poised to climb higher by strengthening banking connections, acquiring new licenses and expanding tailor-made product ranges to meet unique customer preferences. 

Coinbase stays focused on growth by increasing its market share in the U.S. spot and derivatives markets and expanding its product portfolio and international market. Sufficient liquidity supports strategic investment in growth initiatives and expands its service offerings.

Shares of Coinbase however have lost 22.8% year to date, wider than its industry’s decline of 12.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Coinbase shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 25.24X is much higher than the industry average of 13.71X.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of Robinhood Markets (HOOD - Free Report) and Interactive Brokers Group, Inc. (IBKR - Free Report) , two other crypto-oriented stocks, are also trading at multiples higher than the industry average.

Coming back to COIN, the inherent volatility in crypto prices exposes this crypto leader to operational risks. The failure of its foundational platforms also poses risks. It is also exposed to cyber threats.

Nonetheless, Coinbase’s efforts to accelerate growth in the crypto market, increase market share in spot trading on consumer and institutional trading platforms and improve trading experience, along with continued innovation, should help it accelerate growth. 

Despite its premium valuation, one can add this Zacks Rank #1 (Strong Buy) to the portfolio, given the increasing acceptance and adoption of cryptocurrency, which is expected to take the company a long way.  

You can see the complete list of today’s Zacks #1 Rank stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Interactive Brokers Group, Inc. (IBKR) - free report >>

Coinbase Global, Inc. (COIN) - free report >>

Robinhood Markets, Inc. (HOOD) - free report >>

Published in