On Tuesday, February 15, Coinbase (COIN) announced the launch of a crypto remittance service to challenge international money-transfer providers like Western Union (WU) and MoneyGram (MGI). Coinbase stock jumped more than 7% to $208.95 on Tuesday.
Coinbase is one of the leading crypto exchanges. It supports trading in more than 100 cryptocurrencies and ranks among the top cryptocurrency stocks, according to TipRanks.
Mexico Launch
Coinbase has launched the program in Mexico but plans to roll it out to more countries over time. If one sends crypto to someone in Mexico using the Coinbase app, the recipient can cash out the funds or keep the funds in their Coinbase account. Those who choose to cash out can do so at 37,000 locations across Mexico where they will receive cash in the local currency.
Free for Limited Period
Through the end of March, Coinbase is allowing customers in Mexico to cash out crypto sent to them free of charge. It plans to introduce charges thereafter but has promised that its remittance fees will still be up to 50% cheaper than traditional services.
With the crypto remittance service, Coinbase is targeting a market forecast to grow to more than $1.2 trillion by 2030 from about $700 billion in 2020.
Analysts’ Take
In January, Piper Sandler analyst Richard Repetto reiterated a Buy rating on Coinbase stock with a price target of $440, which suggests 110.58% upside potential. The analyst noted Coinbase’s revenue diversification efforts.
Consensus among analysts is a Moderate Buy based on 8 Buys, 1 Hold, and 1 Sell. The average Coinbase price target of $346.56 implies 65.86% upside potential to current levels.
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