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Coinbase’s (NASDAQ:COIN) international strategy is taking shape following reports the company is preparing to launch an offshore derivatives exchange, Barclays analysts told investors in a note Thursday.
The analysts, who have an Equal Weight rating and $74 price target on the stock, explained that “days after COIN’s CEO suggested the company could leave the U.S. in response to ongoing regulatory uncertainty, the company updated their international strategy.”
“Media reports suggest COIN is on the cusp of launching an offshore derivatives platform, better positioning the company to challenge large global competitors.”
The analysts also noted recent comments from Coinbase CEO Brian Armstrong that the company could eventually relocate outside of the U.S. if they don’t see regulatory clarity emerge in the country.
They believe a derivatives platform would increase Coinbase’s competitive positioning overseas, although competition is intense.
“Given our expectation that a futures offering would be more lucrative on a per-trade basis vs. the spot market, we would assume that if Coinbase were to launch such an exchange, the revenue uplift could be quite meaningful, despite the company having only a small portion of revenues coming from overseas,” they added.
