Cantor Daily Research Highlights

Research evidence excerpt

Cantor Daily Research Highlights

h competitive moats and network effects. Furthermore, blockchain technology provides a point of

leverage, expanding the velocity and reach of most financial services products. Our view is that COIN is well-positioned to

thrive in this emerging environment by continually deepening the company's already extensive suite of offerings in the app

and innovating via blockchain technology. While COIN faces cyclical headwinds from crypto asset prices, the company is

taking the opportunity to extend its reach by adding substantially to its catalog of products. This is precisely the right move,

in our opinion.

Expanding the aperture with trading innovation: While COIN announced a variety of new products today, we believe it is

important to note that the company is combining its exchange offering across assets and markets, creating a single global

liquidity pool. On products, management announced pre-IPO perpetual futures, options trading, thematic indices, tokenized

stocks, updated prediction markets with combos and different duration crypto binary markets, an enhanced Coinbase

Advisor, and Coinbase for Agents. In our view, the most interesting offering was tokenized stocks, which are 1:1 backed

and carry the same benefits as traditional equities, including dividends and shareholder rights, all while being accessible

24/7/365. At the same time, we await further clarity on the mechanics and resource requirements of the new tokenized

stock offering.

Enhancing the value proposition with financial services: Management also highlighted upgrades to its more TradFi-related

services across trading, spending, saving, and borrowing. The Coinbase One card is now secured by USDC, allowing users to