JPMorgan Chase: Coinbase gains substantial profits from its partnership with Circle and the USDC economy

According to CoinDesk, JPMorgan's latest report states that Coinbase's partnership with Circle and business layout for USDC stablecoins are generating significant returns through equity appreciation and high profit income. The estimated total value brought to Coinbase shareholders by Circle related businesses is between $55 billion and $60 billion, indicating that the market may underestimate the strategic importance of the USDC ecosystem. In the first quarter of this year, Coinbase received approximately $300 million in issuance payments from Circle, exceeding Circle's total net revenue. JPMorgan estimates that Coinbase had a USDC balance of $13 billion at the end of the first quarter, with revenue of $125 million based on a profit margin of 20% to 25%; Outside the platform, Coinbase and Circle split the revenue of the Circle Reserve Fund equally, earning $170 million with a profit margin of nearly 100% in the previous quarter. JPMorgan Chase has given Coinbase stock a neutral rating with a target price of $404. On Tuesday morning trading, the stock price was around $381.