Coinbase and Gemini’s push beyond mainstream crypto trading is dividing investors about what the companies’ futures look like. By branching into services such as stock trading, payment systems, and prediction markets, the exchanges are seeking to create steadier, more diversified streams of revenue. 

This has led to differing views among investors and Wall Street analysts alike about how well these companies will perform in the years to come.

William Blair, in a note released Monday, said Coinbase was building something much bigger. The company wants to be a full-blown financial platform, trading stocks day and night (24/7), offering crypto futures and other derivatives, running prediction markets, and offering payment systems and stablecoins for businesses. 

Analysts said that, though crypto trading in the sector has been slow recently, that does not reflect the company’s true long-term value. They think investors are underrating Coinbase as it remains predominantly viewed as a retail trading app. 

As for new streams of income, analysts at William Blair, including Andrew Jeffrey and Adib Choudhury, added that they could be expected to be steadier than regular crypto trading in the long term — for instance, through derivatives and payment services. This may benefit Coinbase even in the case of falling crypto prices. 

One major bank, Goldman Sachs, also adopted this long-term concept. This week, it upgraded Coinbase stock to a “buy” rating. However, Goldman also warned that fierce competition and interest rate changes could reduce profits in 2026. Still, the bank noted that Coinbase’s expanding non-trading businesses may help shield it from significant fluctuations in the cryptocurrency market.

Gemini expands with cards, predictions, and global growth

Coinbase is not alone. Gemini, another major crypto exchange, is also seeking new revenue streams. Last month, Gemini launched its own prediction market, allowing users to place bets on future events.

Earlier research by Mizuho Securities found that Gemini’s payment card is also contributing to the company’s growth. The research found that the card creates a “flywheel effect,” meaning that many people who receive the card later also start using the Gemini exchange. Approximately half of Gemini card users eventually transition to exchange users.

William Blair also spoke positively about the stablecoin market, including Gemini’s payments rival Circle, which issues the USDC stablecoin. The firm stated that USDC’s success is more a matter of timing than its effectiveness. As more businesses adopt digital currencies for payments and settlements, stablecoins are likely to become increasingly important.

Goldman Sachs also mentioned Gemini indirectly when discussing competition in the crypto space. Like Coinbase, Gemini faces risks from market swings and changing regulations, but its efforts to expand beyond simple trading are viewed as a positive sign by some analysts.

Wall Street is divided on crypto exchange prospects

Not everyone is confident about crypto exchanges. Mizuho Securities shared a more mixed view in a separate report.

Mizuho surveyed both retail and institutional investors and found that many prefer fintech companies over crypto companies for 2026. Opinions about crypto-native exchanges, such as Coinbase and Gemini, were sharply divided. Some investors expect them to be top performers, while others think they could be among the worst.

Due to this uncertainty, Mizuho maintained a neutral rating on Coinbase. The firm stated that Coinbase’s stock still closely tracks the price of Bitcoin and relies heavily on fees from retail traders. While Mizuho acknowledged that Coinbase could benefit from market volatility, cost control, and interest income linked to USDC, it believes that the risks balance these positives.

On the other hand, Mizuho kept an outperform rating on Gemini. The firm highlighted Gemini’s growing user base, opportunities for international expansion, and its all-in-one trading app. Still, it warned that Gemini is not immune to danger, especially due to market volatility and potential regulatory changes.

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