Coinbase Expands To Africa, Closes Partnership With Stablecoin Exchange Yellow Card
Portfolio Pulse from Khyathi Dalal
Coinbase Global (NASDAQ:COIN) is partnering with African stablecoin exchange Yellow Card to expand into Africa, starting with 20 countries from February 2024. The partnership will allow over 50% of the African population to access USDC purchases through the Coinbase wallet app, with fee-free stablecoin transfers via email and social messaging apps. Coinbase's Layer-2 blockchain Base will enable cheaper USDC transactions. This move is part of Coinbase's international expansion strategy, targeting Africa's young population. Yellow Card has previously raised funds through seed and Series A and B rounds. The market sentiment is positive with a historic Spot Bitcoin ETF approval, leading Wedbush to raise its price target on Coinbase to $180. Mizuho Securities, however, calls the approval a 'pyrrhic victory for COIN.' Coinbase is also acquiring a MiFID-licensed entity to expand in the EU, with the deal expected to close in 2024.
January 12, 2024 | 7:41 pm
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POSITIVE IMPACT
Coinbase's partnership with Yellow Card to expand into Africa could increase its user base and transaction volume, positively impacting revenue. The positive market sentiment and raised price target by Wedbush suggest a bullish outlook for COIN.
The expansion into Africa through the partnership with Yellow Card is likely to open new markets for Coinbase, potentially increasing its user base and transaction volumes. The positive analyst ratings and raised price target by Wedbush reflect a strong belief in the company's growth prospects, which could lead to a short-term increase in stock price. However, the actual impact will depend on the successful implementation of the partnership and market conditions.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100