Stock Price Drop of Coinbase After Earnings Disappointment: Analysts Unfazed
Coinbase Expands into Mainstream Banking: Strategic Partnerships Announced
Coinbase, the leading cryptocurrency exchange, is making a significant move into mainstream banking with strategic partnerships with major U.S. banks.
The exchange recently announced a partnership with PNC Bank, allowing PNC's banking clients, including institutional investors, to buy, hold, and sell cryptocurrencies within their bank accounts. PNC will also provide select banking services to Coinbase. This collaboration is expected to create a scalable crypto access system that meets growing demand for digital asset services through trusted banking channels.
Shortly after, Coinbase partnered with JPMorgan Chase to mainstream crypto banking. This integration enables JPMorgan’s more than 80 million customers to fund Coinbase accounts directly using Chase credit cards, perform seamless bank-to-wallet transfers, and convert Chase reward points into stablecoins.
These partnerships aim to integrate cryptocurrency services directly into traditional banking platforms, thereby expanding crypto access securely and conveniently for millions of users.
Analysts expect these moves to diversify Coinbase's revenue and position the exchange to see significant revenue growth in the near future. Bernstein analysts highlighted several initiatives in Coinbase's latest report that could contribute to this growth.
However, Coinbase's adjusted earnings (ebitda) were $512 million in the same period, down 13% from the second quarter of 2024. This decline followed Coinbase's second-quarter earnings report and coincided with a drop-off in cryptocurrency trading volumes.
Coinbase's stock finished trading at $314.69 on Friday, about 25% below its 52-week high. The stock fell 17% on Friday, potentially due to investor jitters caused by the Iran-Israel conflict and U.S. President Donald Trump's tariff talks.
Despite the recent decline, analysts expect Coinbase to report stronger earnings in subsequent financial quarters, with acquisitions and expansion beyond crypto-only services playing a significant role in lifting the stock.
The acquisition of crypto-focused derivatives exchange Deribit is expected to drive improved trading volumes in the second half of the year. Additionally, the partnership with J.P. Morgan could bolster Coinbase's bottom line.
Using Base, Coinbase's decentralized network, customers can exchange their Chase rewards points for Circle's USDC stablecoin. This partnership could potentially boost Coinbase's customer base, as JPMorgan Chase clients can link their accounts to Coinbase for funding.
In summary, Coinbase’s recent strategic partnerships with PNC Bank and JPMorgan Chase focus on embedding crypto services within mainstream banking. This approach broadens Coinbase’s customer base by making cryptocurrencies accessible through trusted, large-scale financial institutions and enhances financial results by tapping into institutional and retail banking channels at scale. These moves could position Coinbase for significant revenue growth and a potential recovery in its stock price.
[1] Coinbase Partners with PNC Bank to Offer Crypto Services (2025, July) [2] Coinbase and PNC Bank Announce Strategic Partnership (2025, July) [3] Coinbase Partners with JPMorgan Chase to Mainstream Crypto Banking (2025, August) [4] JPMorgan Chase and Coinbase to Integrate Crypto Services (2025, August)
- The strategic partnership between Coinbase and PNC Bank is designed to create a scalable cryptocurrency access system, catering to the increasing demand for digital asset services through reputable banking channels.
- Coinbase's collaboration with PNC Bank allows PNC's clients, including institutional investors, to buy, hold, and sell cryptocurrencies directly within their bank accounts.
- The integration with JPMorgan Chase, another major U.S. bank, enables JPMorgan’s customers to fund Coinbase accounts using Chase credit cards, perform seamless bank-to-wallet transfers, and convert Chase reward points into stablecoins.
- The aim of these partnerships is to integrate cryptocurrency services directly into traditional banking platforms, making it easier and more secure for millions of users to access cryptocurrencies.
- Analysts anticipate that these moves will diversify Coinbase's revenue and pave the way for significant revenue growth in the near future.
- Coinbase's recent acquisitions, such as the cryptocurrency-focused derivatives exchange Deribit, are expected to boost trading volumes in the second half of the year.
- Using Base, Coinbase's decentralized network, customers can exchange their Chase rewards points for Circle's USDC stablecoin, potentially boosting Coinbase's customer base.
- The strategic partnerships between Coinbase and major U.S. banks underscore Coinbase's commitment to advancing crypto adoption, finance, and technology by integrating cryptocurrencies into the mainstream finance sector.
