Crypto exchange Coinbase (COIN) continues to be regarded as one of the most misunderstood companies within the rapidly evolving digital assets sector, according to a recent research report from Wall Street broker Bernstein. The report, published on Wednesday, saw Bernstein significantly increase its price target for Coinbase to $510 from an earlier $310, while reaffirming its 'outperform' rating on the stock. This positive outlook led to Coinbase shares climbing more than 4% to approximately $360 in early trading.

Despite a prevailing bearish sentiment across the broader market, Bernstein posits that Coinbase is solidifying its position as crypto's quintessential 'universal bank'. The exchange is noted for its unparalleled capacity to bridge retail, institutional, and on-chain infrastructure, a scale unmatched by its competitors. Analysts, led by Gautam Chhugani, highlighted that Coinbase is poised to benefit substantially from forthcoming legislative measures, specifically mentioning the GENIUS Act and the anticipated CLARITY Act.

Bernstein's analysis further emphasizes Coinbase's unique standing as the sole crypto-native firm included in the S&P 500 index. It continues to exert dominance in U.S. trading operations, despite facing considerable competitive pressures. A significant component of Coinbase's revenue, its stablecoin business, accounts for approximately 15% of its total earnings and is experiencing rapid expansion through key integrations, such as with Shopify.

On the institutional front, Coinbase plays a critical role, providing custody services for eight out of the eleven prominent Bitcoin ETF issuers. Furthermore, the report points to several strategic initiatives that underscore Coinbase's long-term vision. These include its recent acquisition of Deribit, which stands as the largest crypto options exchange globally, and the explosive growth of its Ethereum Layer 2 network, Base. The Base network is already facilitating significant tokenization pilots, including JPMorgan’s JPMD coin, demonstrating Coinbase's quiet yet impactful role in constructing the foundational infrastructure for the next generation of financial systems.