Coinbase Plummets 11% After UK Tokenization Breakthrough

Coinbase's shares have dropped by over 11% following the company's announcement that it has secured full MiFID-equivalent authorization from the UK's Financial Conduct Authority (FCA). This allows Coinbase to offer tokenized US equities, derivatives, and perpetual futures from a single regulated UK platform.

This move strengthens Coinbase's long-term tokenization story but does not yet change its immediate drivers. The company continues to face pressure from weak trading activity and fee compression in its core business. Despite this, investors are looking ahead to the potential of on-chain capital markets.

Coinbase has projected revenue of $8.5 billion and earnings of $2.1 billion by 2028, requiring 8.3% yearly revenue growth. This forecast yields a fair value estimate of $383.46, representing a 164% upside to its current price.