For US online trading companies an often-overlooked financial metric could act as a bulwark against softening demand in the third quarter, according to analysts.
"While rates were low and crypto markets were hot, investors paid little attention to , but it is becoming an increasingly important driver for Coinbase's revenue stream," Barclays analysts wrote. That has led to a stunning reversal in fortunes for lenders squeezed by near-zero interest rates last year.
Analysts say the feature, called"margin investing", can also be used to drive greater subscriptions to its premium Robinhood Gold as members can borrow money much more cheaply than the standard rate.On the other hand, Coinbase earns interest on reserves backing USD Coin , the second-biggest stablecoin by market capitalization, which it issues jointly with crypto firm Circle.