Coinbase

Coinbase operates at the intersection of compliance-grade infrastructure and mass-market access.

Moat components and our assessment: 1) Intangible assets and brand 85: trusted US custodian to the largest spot Bitcoin and Ethereum ETFs and SOC-audited custody create reputational and regulatory capital that is hard to replicate. 2) Switching costs 78: institutional Prime custody, financing, and ETF operational roles integrate into client workflows and policies, raising migration friction, although not insurmountable for larger asset managers. 3) Network effects 83: liquidity attracts liquidity on the core exchange; Base Layer 2 benefits from developer and app density, and USDC grows with distribution footprint and payment integrations. 4) Cost advantages 72: scale lowers unit risk and compliance cost per dollar of volume, but retail take rates face competitive pressure. 5) Efficient scale 80: regulated exchange and trust charters limit credible US entrants and create advantages in ETF custody and US dollar banking rails.

Durability considerations: trading fees can compress, crypto cycles are volatile, and Base’s long term economics depend on design and governance choices. Overall, multiple moats reinforce each other and are strengthening with derivatives and payments.