Coinbase Target price increased after ‘Transformative Week’: Benchmark

Positive legislative and regulatory developments achieved the shares of Coinbase last week, in addition to other events that kept well for the long -term growth prospects of the crypto exchange, the Benchmark Investment Bank, wrote in a notepad.

The company’s share price rose by more than 23% as a coinbase secure a markets in crypto assets, or Micalicense and a dual slate of American legislative the brilliant action approved In the Senate, who wants to set federal rules for stablecoinsWrote Equity Research analyst Mark Palmer. According to Coinbase shares, owner on Monday around $ 300 changed, according to Yahoo Finance.

While he repeated a ‘buy’ rating, Palmer raised his price target for Coinbase to $ 421 from $ 301, which explains that a higher income is plural for his shares, given that Coinbase’s initiatives are intended to fully benefit from an improving operational environment.

With a mica license, Coinbase can offer crypto -trade, custody, commitment and payments in 27 European Union, Palmer wrote. In a statement on Monday, Coinbase said That the Luxembourg had chosen to set up its European crypto -hub.

The Genius Act offers an important opportunity for Coinbase because a “large segment of the company’s activities” is bound to the USDC Stablecoin van Circle, Palmer wrote. Coinbase invested in the Stablecoin emittent prior to his public offer, which has been enormously successful, and the exchange deserves income from assets such as supporting the Stablecoin US treasuries.

In the first quarter of this year, Coinbase earned $ 300 million in Stablecoin income, according to around 15% of the total turnover of the stock market, according to a shareholder.

Palmer wrote that Coinbase “would benefit from the increased acceptance and use of Stablecoins that is expected to facilitate the genius law” and noted that the bill could be adopted by the American House of Representatives and signed in the law in August, pending substantial changes.

Coinbase earns 100% of the interest on USDC held directly on his platform, and Palmer noted that the company unveiled a payment service Use of the stablecoin. Coinbase has also indicated that USDC will become available as a form of collateral on its US-regulated derivatives platform, which represents another way that Coinbase uses USDC.

Although Coinbase has tried to diversify his income with the help of stablecoins, the most important money maker of the company has been transaction costs for years. In the first quarter, the transaction turnover fell by 19% quarter-over quartaal to $ 1.26 billion, amidst macro-economic uncertainties.

In the coming months, Coinbase can think of other ways to promote the use of USDC on its platform. Last week Coinbase’s Chief Legal Officer Paul Grewal said that Tokenized stock trade was a “huge priority”, reflected recent movements of Competitors such as crackingPalmer noticed.

Published by James Rubin