JPMorgan Chase: Coinbase's Ethereum staking service will increase the exchange's revenue with the merger of Ethereum

Jinse Finance reported that JPMorgan Chase said that Coinbase's Ethereum pledge service will increase the exchange's revenue with the merger of Ethereum.

JPMorgan estimates that Coinbase has a 15% market share in ETH assets, more than its 7% share of the entire crypto ecosystem. Coinbase’s market share may be skewed towards institutions, which are more likely to own ETH and BTC, while retail customers may “trade more speculative tokens more.”

JPMorgan further estimates that Coinbase could generate $650 million in incremental annual staking revenue from the merger. “Coinbase’s scale in ethereum is larger than we thought, and thus directly leads to a larger revenue opportunity,” JPMorgan wrote. The exchange began offering ethereum staking services for institutional clients earlier this month. JPMorgan has a neutral rating on Coinbase stock.

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