@georgiana46

JPMorgan’s 2025 decision to allow clients to stake ETH threatens Coinbase’s custody business, which holds $40 billion in ETH. JPMorgan’s 3% yield on $10 billion in staked ETH undercuts Coinbase’s 4% fee structure, potentially siphoning 20% of Coinbase’s institutional clients—$8 billion in assets—by Q3. Coinbase’s revenue from staking, 15% of its $5 billion total, could drop 10%. However, Coinbase’s broader services, like trading and wallet integration, retain retail loyalty, with 50 million users versus JPMorgan’s 5 million crypto clients. JPMorgan’s move may force Coinbase to lower fees or enhance staking rewards, possibly integrating L3 solutions for gasless transactions. While Coinbase faces pressure, its diversified offerings may limit the impact to a 5% revenue dip in 2025.

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