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Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
Sep 17, 2022
Earlier this week, JPMorgan analyst Ken Worthington wrote a client note saying that crypto exchange Coinbase Global (COIN) may manage to generate $1.2 billion of additional interest income-driven revenue in 2023 given the increased short-term interest rates.
As per estimates, Coinbase’s joint venture with USDC issuer Circle could be contributing approximately $700 million of incremental revenue. Additionally, Coinbase could earn interest income from customer fiat and its corporate cash balance, taking the potential total to $1.2 billion in added revenue next year. However, the bank exclaimed that a key risk for Coinbase gathering its interest income is the possibility of a reduced holding of USDC and fiat currency with the exchange.