Coinbase Global (NASDAQ:COIN) new commercial deal with stablecoin issuer Circle is a potential “P&L positive” for the cryptocurrency exchange, Barclays analyst Ramsey El-Assal contended in recent note.
On Monday, Coinbase (COIN) said it took an equity stake in the issuer of the second-largest stablecoin by market cap, USD Coin (USDC-USD), in an arrangement that will let Coinbase receive an equal share of interest income from the broader distribution and usage of the token, in addition to receiving revenues on a shared basis based on the amount of USDC held on each company’s platforms.
The sell-side analyst, who views COIN with an Underweight rating, thinks this could result in upside to its subscription and services revenue for Q3 and going forward, he wrote in a Monday note.
That’s despite COIN saying the deal would not impact its previous financial outlook released on August 2, according to a Twitter post.
Looking at intraday price action, COIN edged down 0.1% in late morning trading while bitcoin (BTC-USD) drifts up 0.2%.