Coinbase Gains Morgan Stanley Custodial Role, Faces Barclays Underweight at $140
Coinbase has been selected alongside BNY as digital asset custodian and transfer agent for Morgan Stanley’s new Bitcoin Trust, expanding its institutional service footprint. Barclays cut its rating to Underweight with a $140 target citing declining trading volumes, even as shares jumped over 6% on a risk-on rally.
1. Institutional Custody Win
Morgan Stanley launched its Bitcoin Trust and appointed Coinbase alongside BNY as digital asset custodians and transfer agents. This role covers custody, accounting, recordkeeping and cash management, marking Coinbase’s expansion into institutional service offerings and potential fee diversification beyond trading.
2. Barclays Downgrade and Volume Pressure
Barclays downgraded Coinbase to Underweight and set a $140 price target, highlighting global crypto trading volumes slumping to their lowest level in over two years. The analyst firm forecasted first-quarter trading volumes near $196 billion, warning that lower transaction fees would weigh on profitability.
3. Stock Reaction on Risk-On Rally
Coinbase shares surged over 6% on April 8 driven by a broader risk-on rally following a U.S.-Iran ceasefire announcement. The sharp move underscores market sensitivity to macro developments despite underlying volume pressures.