Coinbase’s move to delist some stablecoins this year could help the company’s bottom line, according to one analyst. Cryptocurrency exchanges announced on Friday that they will delist stablecoins in Europe that do not comply with the requirements of the Cryptocurrency Market Regulation, the famous European Union’s crypto law, which will come into full force on December 30th. “In order to provide compliant crypto products and services, we always strive for regulatory compliance, and we will continue to do the same with MiCA,” a Coinbase spokesperson said in a statement shared with CNBC. . “We will share details of our plans in November and provide our affected (European Economic Area) customers with stablecoins issued by appropriately authorized issuers such as (USD Coin) and (EUR Coin). ” That will definitely be a challenge for Tether (USDT). The stablecoin leader has come under intense scrutiny for years for its lack of transparency and alleged use by criminals. Nevertheless, it remains the most popular and most easily accessible stablecoin, as it has become widely popular on exchanges around the world over the past decade. Circle-issued USD Coin (USDC) did not hit the market until 2018. According to Oppenheimer analyst Owen Lau, the delisting will likely lead market makers and traders to exchange Tether for USD coins. That could be a boon for Coinbase. “Coinbase and Circle have a revenue sharing agreement. They share 50% of USDC revenue,” he said. “If USDC’s market cap increases, Coinbase’s revenue will increase as well.” COIN YTD Mountain Coinbase is negative this year Oppenheimer rates Coinbase a buy, with a price target of Friday’s closing price. The price is $282, which is 65% higher than the current price. The stock has risen 118% in the past year, but is down 1% in 2024, with further declines to come as crypto markets struggle for momentum and Bitcoin prices stagnate. It is possible to fall into a trend. “The implementation of MiCA is a positive for Coinbase, there is no doubt about it,” Lau added. “The short-term challenge remains uncertainty from elections and geopolitical tensions, so we expect short-term vulnerabilities. However, after January 1, 2025, (MiCA is a good and important asset for Coinbase) Stablecoins are cryptocurrencies that promise a fixed price peg to another asset, and they are widely seen as the killer app for cryptocurrencies. They are primarily used for trading on centralized and decentralized exchanges and as collateral for decentralized finance (DeFi). Together with large sovereign holders, their issuers are the 18th largest holding of US government debt. According to CryptoQuant, the market capitalization of dollar-backed stablecoins has reached an all-time high in recent weeks, with Tether accounting for more than 70%. This is followed by around 21% of the stablecoin market capitalization.
