Crypto exchange Coinbase (COIN) announced today that its Onramp product now supports Apple Pay (AAPL) for fiat-to-crypto purchases in order to simplify the often time-consuming process of onboarding users. Coinase Onramp is a tool designed to make it easier for developers and businesses to integrate crypto transactions into their platforms. The update will reduce delays thanks to “lightweight” know-your-customer (KYC) requirements for eligible transactions, which will make it faster and more user-friendly.
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In a blog post, Coinbase highlighted how onboarding to crypto can be a hassle, as it requires lengthy KYC steps and multiple apps. With the Apple Pay integration, the process is streamlined and allows users to get on-chain in seconds. Apps already using Coinbase Onramp will automatically have this feature available for their users during eligible transactions.
Following the announcement, Coinbase shares rallied by almost 3% at the time of writing, even as Bitcoin dipped.
An End to Crypto Crackdowns
Another development that is likely helping push Coinbase stock higher is that Trump has been signaling a softer stance on crypto regulation. In fact, his team is searching for SEC candidates who have been critical of Gensler’s crackdown approach to regulating crypto. As a result, more crypto lawsuits will likely get dropped in the near future.
It also helped that Goldman Sachs analyst Will Nance raised Coinbase’s price target from $183 to $397. In a research note, Nance highlighted that since the election, payment technology stocks have seen an 18% median gain, with high-growth, pro-cyclical names performing the best.
The firm sees the overall fintech sector as a beneficiary of a stronger economy and potential policy changes under the new administration. Nevertheless, due to higher valuations and limited clarity on improving fundamentals, Goldman remained cautious on COIN stock with a Hold rating.
Is COIN Stock a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on COIN stock based on nine Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. However, after a 115% rally in its share price over the past year, the average COIN price target of $272.50 per share implies 10.3% downside risk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
