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JPMorgan Upgrades Coinbase to Overweight, Sets $404 Target on Base Token, USDC Strategy

JPMorgan points to Base tokenization prospects with USDC reward segmentation as catalysts for margin expansion.

Overview

  • JPMorgan models a $12–$34 billion market for a potential Base token, with $4–$12 billion of value possibly accruing to Coinbase, while executives say no launch is decided.
  • Analysts estimate concentrating most USDC yields on Coinbase One subscribers could add about $374 million in annual earnings, roughly $1 per share.
  • The bank’s $404 price target for December 2026 assumes 50x projected 2027 earnings and includes roughly $4 billion from prospective Base‑token value.
  • Shares rose about 9% to roughly $353–$354 on Friday, taking market value near $90.6 billion as investors look to the Oct. 30 third‑quarter report.
  • Recent context includes mixed Q2 results and reported Echo acquisition efforts as Coinbase expands services, plus CEO Brian Armstrong’s upbeat view on U.S. crypto legislation progress.