JPMorgan Estimates $60B Valuation for Coinbase's USDC Partnership Citing 20-25% Profit Margins

JPMorgan Chase analysts have underscored the potential undervaluation of Coinbase’s business tied to its partnership with Circle and the USDC stablecoin ecosystem, suggesting this segment could significantly influence the company’s stock strategy and shareholder returns. In a July 29, 2025 report, the bank estimated that Coinbase’s Circle-related operations could be valued at up to $60 billion, emphasizing their role in generating high-margin revenue. This assessment follows Coinbase’s first-quarter 2025 earnings, which included $300 million in revenue from USDC issuance fees, alongside $125 million earned from holding $13 billion in USDC balances through the Circle Reserve Fund, operating at a 20-25% profit margin [1].

The JPMorgan analysis highlights Coinbase’s strategic alignment with institutional finance trends, particularly through its deep integration with USDC. The bank’s Global Co-Head of Blockchain, Naveen Mallela, stated, “We have always believed in having a token-based solution on public blockchains,” underscoring the firm’s confidence in the partnership’s long-term viability [1]. The report argues that the market has yet to fully account for Coinbase’s role in the USDC ecosystem, which supports institutional adoption and stablecoin innovation. This includes USDC’s migration to public Layer 2 networks, a shift that analysts view as a competitive advantage for public blockchain initiatives over private alternatives [1].

USDC, currently trading at $1.00 with a $63.78 billion market cap, has maintained relative stability despite a 13.67% decline in 24-hour trading volume to $14.21 billion. The Coincu research team has noted that expanding USDC’s presence in institutional decentralized finance (DeFi) could foster regulatory clarity, further solidifying its position as a key infrastructure asset [1]. However, the JPMorgan report did not cite immediate regulatory responses to the partnership, leaving open questions about potential compliance risks.

The valuation potential tied to Coinbase’s Circle partnership stems from shared revenue mechanisms, including issuance payments and reserve fund management. With $13 billion in USDC balances under its control, Coinbase has demonstrated a model for generating consistent returns through stablecoin infrastructure. JPMorgan’s analysis suggests this could serve as a blueprint for institutional players seeking to capitalize on blockchain-based financial systems, though the bank cautioned that market recognition of these benefits remains incomplete [1].

Sources:

[1] JPMorgan Highlights Coinbase’s USDC Partnership Value Potential (https://coinmarketcap.com/community/articles/6888bfc6cbe08374be309e4f/)