Coinbase Global Inc. stands to benefit from higher interest rates into next year, an analyst wrote Wednesday, and shares in the cryptocurrency exchange increased after falling nearly 70% so far this year.
J.P. Morgan analyst Kenneth Worthington said he sees interest income as a $1.2 billion revenue opportunity for Coinbase, after the company announced on Tuesday it was reducing its reliance on stablecoins like USD Coin USDCUSD, by doubling the debt ceiling of its staked ether ETHUSD, -0.51% vault. “The Coinbase revenue opportunity is more substantial than we see at other financial institutions reflecting some unique investments and idiosyncrasies with crypto accounts,” Worthington said. “The biggest opportunity is from Coinbase’s investment in USDC, but we also expect Coinbase to generate substantial income from customer fiat. We expect Coinbase could keep nearly all interest income, unlike financial peers that pass on some interest income to clients.
Smells like 🐂💩
Crypto will save us everytimeicash naf_naf_n_naan
Idiots