BofA Targets $340 COIN as Morgan Stanley Unveils Wallet Strategy
Bank of America upgrades Coinbase to ‘Buy’ with a $340 target while Morgan Stanley confirms a 2026 digital wallet launch, marking a dual institutional push into crypto infrastructure.
Wall Street’s pivot from speculation to infrastructure accelerated Thursday as Bank of America (BofA) upgraded Coinbase (COIN) to a “Buy” rating, setting a price target of $340. The move coincided with Morgan Stanley’s announcement of a proprietary digital asset wallet, signaling a coordinated institutional push into tokenization.
The "Everything Exchange" Thesis
BofA Securities ended its neutral stance on Coinbase, citing the exchange’s successful diversification beyond volatile spot crypto trading. Analysts noted the platform’s transition into an “Everything Exchange,” now integrating stock and ETF trading alongside prediction markets. COIN shares reacted moderately, holding $247.16 (+0.50%) in early trading, as volume remained cautious despite the 38% implied upside.
“Under the surface of the 4Q25 crypto correction, the company’s product velocity has increased… This supports its objective of becoming the ‘everything exchange’ and cross-selling more products to its existing users.” Bank of America Research Note
The upgrade leans heavily on political tailwinds. With the Trump administration signaling favorable regulatory clarity for 2026, BofA projects sizable revenue growth from Coinbase’s “Tokenize” product, a vertical designed to handle issuance and custody for real-world assets (RWAs).
Morgan Stanley’s Infrastructure Play
While BofA validated the exchange model, Morgan Stanley moved to capture the custody layer. The bank confirmed plans to launch a digital wallet in H2 2026, specifically architected for tokenized securities and private equity, rather than just retail crypto storage.
This follows an aggressive integration roadmap for its E*Trade division, which is set to enable spot trading for Bitcoin, Ethereum, and Solana in the first half of the year. The strategy is clear: Morgan Stanley is not merely offering access; it is building the rails for a tokenized private market, positioning itself to compete directly with crypto-native custodians.
Market Outlook: The simultaneous validation from two top-tier banks marks a shift in institutional sentiment. The focus has moved from “crypto asset class” exposure to “blockchain infrastructure” ownership. For market makers, the message is effectively a green light to re-risk long positions on infrastructure plays.
