Coinbase Just Gained More Than 25% in a Month. Here's Why It's Still a Buy

Coinbase Global (NASDAQ: COIN) was the first crypto exchange to list publicly in the U.S. and its brand has become synonymous with cryptocurrency. As a result, crypto volatility often affects its share price. For example, the recent slump in cryptocurrency prices contributed to a decline of about 40% during the past six months.

More recently, signs of digital asset recovery helped it erase some of those losses. As of March 12, Coinbase was trading at about $196, after gaining more than 25% during the past month. Bitcoin, meanwhile, has pushed above $70,000.

The reason I'm bullish on the stock has little to do with crypto. Quite the opposite -- I think Coinbase is a buy because it is establishing various revenue streams that don't depend on crypto trading. Here are two of them.

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1. Coinbase launched 24/5 stock trading in the U.S.

At the end of February, Coinbase rolled out 24-hour equity trading, five days a week, for all its U.S. users. The platform now offers about 6,000 U.S. stocks and exchange-traded funds (ETFs) for commission-free trading, further blurring the lines between crypto exchanges and brokerages. Investors can click directly from stock research on Yahoo! Finance to trade on the Coinbase platform.

This week, it launched futures contracts in 26 countries in Europe, giving Coinbase Advance customers up to 10-fold leverage on certain products. Futures are a type of derivative that allows investors to bet on the future value of an asset. Each of these developments takes Coinbase closer to its aim of becoming a one-stop shop for all investment needs.

2. Coinbase has a powerful stablecoin revenue stream

Stablecoins have the potential to generate serious cash for Coinbase in the long term. Here's how it works. Stablecoin issuers need to back each token they create with easily accessible reserves, such as U.S. Treasuries. Those reserves generate returns. In the case of USD Coin (CRYPTO: USDC), some of those returns go into Coinbase's coffers.

According to research from The Motley Fool, USDC is the second-largest stablecoin by market cap. It was jointly created by Coinbase and Circle Internet Group. Circle now issues the stablecoin, and Coinbase has a considerable stake in its operations. It earns yield from USDC deposits held on the Coinbase platform as well as 50% of revenue from USDC held off-platform.

Those yields accounted for almost 20% of Coinbase's revenue last year. The company generated $1.35 billion from stablecoins in 2025, up from $911 million in 2024. As more financial institutions adapt to stablecoins, the number of USDC in circulation will likely increase, potentially generating more revenue.

Coinbase is much more than crypto

It isn't clear what routes blockchain adoption will take, but it is hard to think of any in which Coinbase does not play a central role. It has a stake in one of the biggest stablecoins. Many Bitcoin ETFs use Coinbase's custody services, and Coinbase is developing crypto wallets for AI agents.

Regulatory changes could present the biggest challenge. If authorities around the world sour on crypto, that could severely hamper Coinbase's expansion. Investors should also watch what role USDC plays as the stablecoin market develops.

If you're looking for a fintech stock that will benefit from stablecoin growth, Coinbase is a blockchain pioneer. That makes it a buy in my book.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.