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Will JPMorgan-Coinbase Tie-Up Bring Crypto Closer to Mainstream?

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Key Takeaways

  • JPMorgan and Coinbase will link bank accounts to crypto wallets and launch crypto card payments in 2025.
  • The partnership embeds compliance into JPM's system and pilots deposit tokens on Coinbase's Base blockchain.
  • JPM shares have risen 16.8% in three months, outpacing the S&P 500, with earnings estimates trending upward.

The partnership between JPMorgan (JPM - Free Report) and Coinbase Global (COIN - Free Report) marks a pivotal step toward mainstream cryptocurrency adoption in the United States, combining the strengths of a leading global bank with one of the world’s largest crypto exchanges to bridge traditional finance and digital assets.

Customers will soon be able to connect their JPMorgan accounts directly to Coinbase wallets through a secure API, eliminating reliance on third-party aggregators. Starting fall 2025, Chase credit cards will support direct crypto purchases, and by 2026, users will be able to convert Chase Ultimate Rewards points into USDC, marking the first time a major rewards program is linked to a stablecoin.

This collaboration enhances compliance and security by embedding KYC and AML processes directly into JPMorgan’s infrastructure. Bypassing aggregators reduces data privacy risks and allows the bank greater control over fiat-to-crypto flows. The partnership is also pioneering the use of stablecoins and tokenized bank deposits, with JPMorgan piloting its own deposit token (JPMD) on Coinbase’s Base blockchain. This signals convergence between regulated finance and decentralized platforms.

The alliance between JPM and COIN signals broader institutional acceptance of crypto and paves the way for new applications, such as global payments and tokenized rewards, that blend traditional finance with blockchain innovation. This is expected to reshape the financial landscape and push cryptos further into the mainstream.

The JPMorgan-Coinbase partnership will establish compliant, secure and highly accessible on-ramps from traditional banking and rewards ecosystems to the world of digital assets. This is likely to accelerate broader adoption of crypto for payments, investing and loyalty programs, while reinforcing bank-grade standards for safety and compliance in a rapidly maturing market.

What Steps are Other Banks Taking Toward Crypto Adoption?

JPMorgan is not the only bank that is foraying into the digital asset space. Many other banks, like Bank of America (BAC - Free Report) and PNC Financial (PNC - Free Report) , are also vying for a market share in this lucrative business. 

Bank of America is already laying the groundwork for a stablecoin, CEO Brian Moynihan revealed on the second-quarter earnings call. While client demand is still nascent, the Bank of America CEO noted the bank is prepared to move forward, likely in partnership, once adoption and timing align. “You’d expect our company to move on that,” he said.

Similar to JPM, PNC Financial, in partnership with Coinbase, aims to expand secure and innovative crypto solutions for both retail and institutional clients. PNC Financial will provide select services to Coinbase while jointly developing regulated options that allow clients to buy, hold and sell cryptocurrencies via Coinbase’s Crypto-as-a-Service platform.

JPMorgan’s Price Performance, Valuation and Estimates

JPMorgan’s shares have soared 16.8% in the past three months, outperforming the S&P 500 Index’s gain of 13.1%. 

 

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From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.99X, above the industry average.

 

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The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a decline of 2.2% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 5.3%. In the past month, earnings estimates for 2025 and 2026 have moved 4.6% and 3.2% upward, respectively.

 

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JPM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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