The Coinbase Association (COIN) with Circle (CRCL) and the exposure to the Circle USDC stable is generating a significant financial rise, both through the assessment of capital and high -margin income flows, according to a new Wall Street Bank JPMorgan report.
The total value of the economy related to the circle to Coinbase’s shareholders is estimated at $ 55 to $ 60 billion, the bank said, suggesting that the market may be underestimating the strategic importance of the USDC ecosystem.
The encryption exchange has 8.5 million shares in Circle, valued at $ 1.6 billion as of July 25. However, the largest story lies in income related to the USDC, according to the report.
Only in the first quarter of this year, Coinbase won approximately $ 300 million in Circle distribution payments, more than the total net income of $ 230 million.
The bank estimated that Coinbase had $ 13 billion in USDC balances on the platform at the end of the first quarter, generating $ 125 million in revenues to 20-25% margins.
Entry of the platform, Coinbase Splits Circle Reserve Fund Income 50/50, obtaining $ 170 million the last quarter with almost 100% margin, the report added.
The bank has a neutral qualification in Coinbase shares with an objective price of $ 404. The shares were around $ 381 in the first operations on Tuesday.
Read more: COINDCX discards the report of Coinbase’s acquisition conversations
