A waterborne one-component coating composition capable of self-crosslinking and exhibiting a gloss and hardness improvement when cured that is similar to a solventborne two-component composition. The composition includes a urethane phase including a polyurethane polymer with at least polyester diol monomer units, polycarbonate diol monomer units, and ketone-functionalized diol monomer units. The composition may include an optional acrylic phase including an acrylic polymer having monomer units selected from one of alkyl (meth)acrylate monomer units, vinyl acetate monomer units, styrene monomer units, ketone-functional vinyl monomer units, or combinations thereof. The composition includes a hydrazine-functionalized crosslinking agent configured to crosslink one of the ketone-functionalized diol monomer units, the ketone-functional vinyl monomer units, or both. The composition further includes one or more tertiary amine reaction moderators or neutralizing agents.