JPMorgan believes the Ethereum merger will benefit Coinbase


by Rrick


According to JPMorgan, cryptocurrency exchange Coinbase could benefit from Ethereum`s long-awaited merger.

Analyst Kenneth Worthington said in a note to investors on Wednesday that the San Francisco-based exchange's Ethereum holdings 

and its staking service for institutions will help it financially.

However, the New York-based investment bank believes that Ethereum's transition to ETH 2. 0 will benefit the company. 

 "We see Coinbase as a significant beneficiary of the Ethereum Merge," JPMorgan said in a note

Ethereum currently employs the same proof-of-work consensus mechanism as Bitcoin.

However, Ethereum's transition to proof of stake will eliminate the need for miners.

According to JPMorgan's note, Coinbase can generate an additional $650 million

 in annual staking revenue from Ethereum's "merge," with Ethereum trading at $2,000 and a 5% yield. 

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