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

The partnership between JPMorgan JPM and Coinbase Global COIN 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 and PNC Financial PNC, 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 EstimatesJPMorgan’s shares have soared 16.8% in the past three months, outperforming the S&P 500 Index’s gain of 13.1%.  Image Source: Zacks Investment ResearchFrom a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.99X, above the industry average. Image Source: Zacks Investment ResearchThe 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. Image Source: Zacks Investment ResearchJPM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks