Coinbase (Coin) and JPMorgan (JPM) have formed a long -term strategic partnership to extend access to digital assets and improve customer safety.
The agreement, announced earlier in the day, underlines the role of Coinbase as a supplier of basic blockchain infrastructure, not just a negotiation place, for large American banks, according to a note on Wednesday of the Bernstein brokerage company.
Rather than competing with cryptographic platforms, Jpmorgan chooses to integrate, signaling a change in the way inherited institutions approach digital assets, analysts led by Gautam Chhugani wrote.
This decision is particularly notable since the past criticisms of the CEO of JPMorgan Jamie Dimon with regard to the crypto, marking a broader institutional pivot, according to the report.
Analysts consider the partnership as a major unlocking for the adoption of cryptography, by removing the bottlenecks of banking and allowing Coinbase to draw on the pools of existing capital from the traditional financial system.
Features such as transfers of basic bank accounts and the rewards linked to the USDC are early steps towards complete interoperability between traditional finance and crypto, said the broker, adding that over time, stalins like the USDC could serve as digital cash for payments and savings, as banks seek to fill the gap between Legacy and the emerging crypto.
Bernstein has an outperformance note on the Coinbase stock with a price target of $ 510. The shares increased by 2.7%, merchant about $ 381.50 at the time of publication.
Read more: Coinbase harvests the growing awards of circle ties and the USDC economy: JPMorgan
