Coinbase to Enable Direct Paycheck Deposits

Coinbase (COIN) has announced that it will soon be rolling out a new feature, which will allow its customers in the U.S. to directly deposit their paychecks into their Coinbase accounts. The company provides a global cryptocurrency trading platform and has a number of innovative cryptocurrency products in its portfolio.

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Shares of the company slipped 2.2% in early trade on Tuesday.

The move is expected to help save time and make investing more convenient for the customers. Notably, the company’s clients will enjoy zero transaction fees on direct deposit funds and can earn crypto rewards with their Coinbase Card. (See Coinbase stock charts on TipRanks)

Furthermore, customers will have the option to get paid in crypto by making recurring buys or earn interest on income. Coinbase is said to have partnered with companies, including Fortress Investment Group, M31 Capital, Nansen, and SuperRare Labs, to change the future of payroll.

Following the news, JMP Securities analyst Devin Ryan initiated coverage on the stock with a Buy rating and a price target of $300 (29.2% upside potential from current levels).

Ryan noted, “While Coinbase has experienced hyper-growth in recent years, reaching a point of scale that we argue creates competitive advantages, both the company and the crypto industry more broadly are still in the early innings of their growth cycles.”

Based on 12 Buys, 3 Holds, and 1 Sell, the stock has a Moderate Buy consensus rating. The average Coinbase price target of $351.50 implies 51.4% upside potential from current levels. Shares have lost 29.3% over the past year.