2022-08-19 17:52:10
JPMorgan Claims Bigger Revenue Opportunity for Coinbase With Ethereum Staking
Analysts of prominent investment bank JPMorgan believe that Coinbase will be meaningfully benefitted from the upcoming Merge. In a note to the clients on Wednesday, analyst Kenneth Worthington said that the San Francisco-based crypto exchange has taken concrete measures in a bid to maximize the value of ETH staking for its clients.
This is expected to result in higher revenue generation itself. Worthington asserted,
“We see the staking revenue opportunity bigger (proportionally) than the income opportunity given we expect Institutional staking clients will contribute meaningfully to Eth staking revenue, but much less so for Institutional customers. The vast majority of the economics remains with retail,”
Currently, the company holds a 15% market share of Ethereum assets. This is will give Coinbase a competitive advantage in this space, the New York-based investment bank claims. Coinbase’s new institutional-focused staking product, and its CEO, Brian Armstrong, said he expects this will benefit its business model.
As per Worthington’s estimates, the exchange can potentially generate incremental annual staking revenue from the Ethereum Merge of $650 million with Ether’s price at $2,000 and a 5% ETH yield. “We see an incremental annual income of $80-$100mn of staking income,” Worthington added.
https://cryptopotato.com/jpmorgan-claims-bigger-revenue-opportunity-for-coinbase-with-ethereum-staking/
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