Cryptocurrency exchange giant Coinbase (COIN) recently rolled out a new feature designed to make it a little more attractive, and hopefully, help secure its market dominance. The move seemed quite welcome to shareholders, though, who sent shares up nearly 3% in Thursday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The new tool is called Embedded Wallets, which allows app developers to add “self-custodial wallets” to their apps with a comparative minimum of extra coding. The software development kit (SDK) that makes Embedded Wallets possible allows for a set of cryptocurrency features like swaps and even onramps, reports noted.
Reports note that the Embedded Wallets system uses a lot of the same infrastructure that powers Coinbase DEX accounts, and can be used in concert with a slew of other Coinbase tools like Onramp and MagicSpend. Also included is key management that is a match for enterprise-level use and architecture that supports key compliance points.
Good Timing
Meanwhile, word from the Trump administration is likely to give Coinbase even more help, and may see that Embedded Wallets system put to work in a few more places. President Trump is set to sign a new executive order that allows 401(k) retirement plans to use “alternative assets,” including precious metals, real estate, and cryptocurrency. This is the part that should mean something to Coinbase, as it likely means a whole lot of institutional buyers stepping in.
The move not only gave Coinbase a boost, but also gave Bitcoin (BTC-USD) a boost as well. This news let Bitcoin clear the $116,000 level for the first time in a little over a week. While certainly, opening the gates does not mean everyone will rush in, there is little doubt some will. More buyers are more buyers no matter how you slice it.
Is Coinbase a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on 14 Buys, 12 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 57.85% rally in its share price over the past year, the average COIN price target of $376.67 per share implies 21.23% downside risk.
