Coinbase (Coin) and JPMorgan (JPM) have formed a long -term strategic partnership to expand access to digital assets and improve customer security.
The deal, which was announced earlier today, emphasizes Coinbase’s role as a core -blockchain infrastructure provider, not just a trading site, for large US banks, according to a note on Wednesday from the brokerage company Bernstein.
Instead of competing with Crypto platforms, JPMorgan chooses to integrate with them and signalize a shift in how older institutions are approaching digital assets, analysts wrote by Gautam Chhugani wrote.
The move is particularly remarkable considering JPMorgan CEO Jamie Dimon’s previous criticism of Crypto, which marks a wider institutional turn, the report says.
The analysts see the partnership as a larger cancellation for crypto uptake, removal of key bank bottlenecks and enable Coinbase to utilize existing capital pools within the traditional financial system.
Features such as transfers of bank-to-coinbase account and USDC-connected rewards are early steps towards full interoperability between traditional funding and crypto, the broker said, adding that stablecoins like USDC can serve as digital cash and savings over time that banks seem to bridge the bridge between Legacy rails and the new crypto economy.
Bernstein has a better classification on the Coinbase share with a price target of $ 510. The shares were 2.7% higher and traded about $ 381.50 upon publication time.
Read more: Coinbase is reaping growing rewards from circular tape and USDC economy: JPMorgan
