Coinbase

• A blockchain token designed to track the price of Coinbase Global, Inc. (NASDAQ: COIN).

• It is not a share. Holding the token does not confer ownership of the company, voting rights, or a direct claim against it.

• It offers fractional, round-the-clock price exposure without opening a foreign brokerage account.

• Founded: 2012

• Headquarters: None (remote-first company)

• CEO: Brian Armstrong (co-founder)

• Listed on: Nasdaq (COIN), since April 2021

• Sector: Cryptocurrency exchange and financial services

• Coinbase operates a regulated cryptocurrency exchange and custody business, primarily serving the United States.

• Trading fees remain the largest revenue line, making results sensitive to crypto market volumes.

• Subscription and services revenue, including stablecoin-related income and staking, has grown as a more stable component.

• Transaction revenue from consumer and institutional trading is the largest line.

• Subscription and services revenue includes its share of USDC stablecoin income, staking rewards, custody and Coinbase One.

• It has expanded into derivatives and runs Base, a blockchain network built on Ethereum.

• You get price exposure to the underlying instrument.

• You do not get shareholder voting rights.

• Dividend or distribution treatment depends on the issuer's structure and is often not passed through.

• You take on issuer and custodian risk in addition to the price risk of the underlying.

Pros:

• It is the largest regulated crypto exchange in the United States.

• Stablecoin and staking income diversify revenue away from trading fees.

• It is a member of the S&P 500.

Cons:

• Revenue rises and falls with crypto trading volumes.

• Trading fees are under pressure from brokers such as Robinhood.

• Regulatory changes can affect products and costs.

• Counterparty risk: if the issuer or custodian fails, the backing may not be recoverable.

• Tracking risk: the token price can diverge from the underlying, particularly outside US market hours when the underlying does not trade.

• Liquidity risk: on-chain liquidity is thinner than the underlying market, so spreads can widen sharply.

• Regulatory risk: India does not yet have a settled framework for tokenised equities, and tax treatment remains unclear.

• Price risk specific to the underlying instrument.