Shares of Coinbase Global (COIN) rose 4.2% on Tuesday after the company announced that it had become custody partner of Facebook’s (FB) new digital wallet, Novi. Coinbase provides end-to-end financial infrastructure and technology for the crypto economy.
With the help of Novi, people will be able to send and receive money abroad instantly, securely and free of cost. Its users can buy Pax Dollars through their Novi account and transfer them to each other instantaneously. (See Coinbase stock charts on TipRanks)
Coinbase’s role will be to keep these funds safe via Coinbase Custody Trust Company, a qualified custodian. As of June 30, 2021, Coinbase Custody had $180 billion of crypto assets on its crypto-native platform. Notably, Novi users will also be benefiting from Coinbase Custody’s leading insurance program, which includes a $320 million commercial crime policy.
Following the news, JMP Securities analyst Devin Ryan maintained a Buy rating on Coinbase with a price target of $330 (8% upside potential from current levels). (See Analysts’ Top Stocks on TipRanks)
Ryan noted, “Novi adoption could represent an important catalyst for broader digital asset adoption over time and the expansion of the cryptoeconomy. Facebook is the marquee platform of social connectivity globally and with ~2.9B monthly active users at June 30th, its progression into the digital assets space could represent an important catalyst for adoption and an ongoing evolution toward more mainstream usage (and everyday life).”
Overall, Coinbase has a Moderate Buy consensus rating based on 12 Buys, 3 Holds and 2 Sells. At $340.73, the average Coinbase price target implies 11.5% upside potential.
Using TipRanks’ Website Traffic tool, which analyzes website traffic volume data provided by Semrush (SEMR), investors can expect Coinbase to report encouraging website traffic figures. In the third quarter of 2021, the number of total unique visitors on all devices from its family of domains, which comes in at 63.5 million, increased 131.6% year-over-year.
On a year-to-date basis, the number of total unique visitors to Coinbase’s website from January 2021 to September 2021 have jumped 228.2% from January 2020 to September 2020. (See Coinbase’s website traffic on TipRanks)
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