Coinbase’s shares (COIN) edged higher on Monday after the U.S. crypto exchange pulled back the curtain on two separate partnership arrangements with investment bank giant Citi (C) and top alternative asset manager Apollo (APO).
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Coinbase and Citi Eye Fiat-to-Crypto Transfers
With Citi, Coinbase’s partnership is focused on building digital asset payment pipelines to simplify and expand the process for Citi’s institutional clients. For a start, both companies would work on supporting the client’s ability to deposit and withdraw fiat currencies through Coinbase’s platform.
Over the coming months, both organizations will provide more details on additional initiatives to be developed under the partnership. At the same time, they plan to collaborate on stablecoins to create an alternative payment method for moving fiat currencies into the blockchain.
Wall Street Deepens Crypto Ties
Coinbase’s partnership with Citi comes as Wall Street continues to embrace digital assets, integrating the technology further into the traditional lending system.
This month, reports have emerged that Morgan Stanley (MS) is working to pave the way for its wealth-management clients to invest in cryptocurrency funds, while JPMorgan (JPM), the largest U.S. commercial bank, is working to enable its institutional clients to obtain loans using leading digital assets, Bitcoin and Ether, as collateral.
Apollo Backs Coinbase’s Private Credit Push
Meanwhile, Coinbase Asset Management (CBAM), the crypto exchange’s wholly-owned subsidiary, has also tapped Apollo to “bring Coinbase stablecoin credit strategies to market.”
The goal in this regard is to provide loans against over-collateralized digital assets such as Bitcoin to traditional and digital-native borrowers. Examples of such borrowers include stablecoin issuers, payment service providers, neobanks, and financial technology companies.
Both organizations will also seek to provide investors with exposure to credit strategies managed by Apollo using Coinbase’s tokenization technology. Coinbase added that they are looking to deliver these credit investment products by next year.
Anthony Bassili, CBAM’s president, pointed out that Coinbase wants to unlock opportunities not available in traditional private credit markets but accessible through the stablecoin ecosystem.
Is COIN a Good Stock to Buy?
Turning to Wall Street, Coinbase’s shares currently have a Moderate Buy consensus rating, as seen on TipRanks. This is based on 15 buys, nine Holds, and two Sells issued by 26 analysts over the past three months.
However, the average COIN price target of $390.06 indicates almost 8% upswing potential from the current level.
