Rate Hike Triggers Shift in Client Cash Balances for Bitgo Holdings, Coinbase Global, and Cboe Global Markets

The recent rise in short-term yields has put client cash balances under the spotlight. Firms that handle idle balances effectively can gain an edge over their peers, affecting earnings and risk.

Among the stocks exposed to this rate story are Bitgo Holdings (BTGO), Coinbase Global (COIN), and Cboe Global Markets (CBOE).

Bitgo Holdings operates a digital asset infrastructure platform that sits on top of large institutional balances. A wider addressable market, facilitated by regulatory frameworks like the GENIUS Act and OCC charter, could lift Bitgo's custody and cash yield revenues.

Coinbase Global runs a large U.S. brokerage-style platform where client assets and cash are held in custody. Higher short-term yields on fiat and stable holdings can influence Coinbase's earnings power.

Cboe Global Markets operates major options, futures, and equity venues where higher short-term rates can impact income on margin and collateral balances.