Google’s Partnership With Coinbase Is ‘Validation’ for the Crypto Industry: Oppenheimer

Owen Lau, senior analyst at investment bank Oppenheimer, joined “All About Bitcoin” to discuss what Google’s partnership with crypto exchange Coinbase could mean for other crypto-native companies.

AccessTimeIconOct 12, 2022 at 7:46 p.m. UTC
Updated May 9, 2023 at 3:59 a.m. UTC
Layer 2
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

With its recent deal with Google, crypto exchange Coinbase could be setting a precedent for other crypto-based companies looking to work with traditional firms, according to Owen Lau, senior analyst at investment firm Oppenheimer.

He told CoinDesk TV Coinbase's partnership with the tech behemoth is also a sign of “validation” for the digital assets industry.

“Many crypto-native companies will go after these white-labeling paths, which is to provide the back-end crypto technology surfaces to traditional players so that they can expand their TAM,” or total addressable market, Lau said during an appearance on CoinDesk TV’s “All About Bitcoin” on Tuesday.

Earlier this week, Google said it would be tapping Coinbase, the second-largest crypto exchange by volume in the world, to accept crypto payments via Coinbase’s custody service, Coinbase Prime. Google is turning to Web3 in a bid to build out speed and interoperability for users.

The partnership, which will begin next year, will give users the option to pay for Google’s cloud services via the use of select cryptocurrencies, such as bitcoin (BTC), ether (ETH) and even dogecoin (DOGE).

Meanwhile, Coinbase’s Cloud Nodes will migrate its applications, which primarily operate on Amazon’s Web Services, over to Google Cloud.

Oppenheimer has a “buy” and an “outperform” rating on Coinbase’s stock, with a price target of $107.

“Coinbase is more [of] a digital assets enabler rather than a pure-play crypto exchange,” Lau said, referring to the exchange’s audit capabilities, including its commerce, custody and international business footprint. The company recently received a license to begin operating in Singapore.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Fran Velasquez

Fran is CoinDesk's TV writer and reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.