research out JPMorgan Chase & Co. JPM find this crypto exchange Coinbase Global Inc COIN will benefit significantly from the coming ether ETH/USD merge.

What happened: An increase in post-merger staking revenue will be positive for Coinbase, the JPMorgan analyst explained Kenneth Worthington seen in a note from CoinDesk.

The bank estimates that Coinbase has a 15% stake in ETH assets, exceeding its 7% stake in the overall crypto ecosystem. This ETH market share is likely geared towards institutional clients who are more likely to be owners BitcoinBTC/USD and ETH.

As such, JPMorgan further estimated that Coinbase could generate an additional $650 million in annual staking revenue from the merger. The calculations were performed assuming that ETH is priced at $2,000 with a 5% return from staking.

Coinbase estimates that the average Ethereum staking return will be much higher after the merger. In a note to clients in February, the crypto exchange said it expects staking returns of between 9% and 12% per year.

“Coinbase has grown [ether] than it was intuitive to us, which translates directly to a larger revenue stream,” Worthington said in the note.

See also: HOW TO STAKE ETHEREUM

Price promotion: Coinbase shares traded nearly 1% higher at $86.25 in the premarket session, according to data from Gasoline Pro.

At press time, ETH is trading at $1,854, up 0.4% over the past 24 hours.