Key Takeaways
- Bloomberg Intelligence says Coinbase’s USDC revenue could rise as much as sevenfold if stablecoin payments accelerate under new U.S. laws.
- Coinbase earns 100% of interest on USDC held on its platform and splits global reserve income 50/50 with Circle.
- Coinbase also holds a significant minority stake in Circle, aligning both firms as USDC adoption grows.
Stablecoins may quietly become Coinbase’s most powerful profit engine.
While crypto markets swing and trading volumes rise and fall, one revenue stream has remained steady — and Bloomberg Intelligence now believes it could explode.
A new report projects Coinbase’s stablecoin revenue, driven largely by USDC, could surge by as much as seven times in the coming years.
The catalyst: accelerating payment adoption and new U.S. stablecoin legislation that could legitimize digital dollars at scale.
A Revenue Line That Doesn’t Depend on Bitcoin’s Mood
Bloomberg Intelligence estimates Coinbase generated approximately $1.35 billion in stablecoin revenue in 2025, up 48% from $911 million the previous year.
That accounted for roughly 19% of the company’s total revenue.
Unlike trading fees, which fluctuate sharply with crypto prices, stablecoin income is tied to interest earned on reserves backing USDC.
That makes it a far more predictable and higher-margin business.
The difference became clear in late 2025. As Bitcoin dropped sharply and Coinbase’s fourth-quarter revenue fell 20%, stablecoin revenue remained resilient.
Bloomberg analysts Paul Gulberg and Samuel Radowitz argue that this consistency could become far more meaningful if regulatory tailwinds accelerate USDC adoption.
The Regulatory Tailwind
A central driver is the GENIUS Act, signed into law in July 2025.
The legislation provides a federal framework for stablecoin issuers, establishing clearer rules around reserves, audits, and oversight.
If the law unlocks broader payment adoption — from cross-border transfers to merchant settlements — the total supply of USDC could expand significantly.
More USDC in circulation means more reserves backing it.
Those reserves are invested in U.S. Treasuries and other safe instruments, generating interest income. Coinbase receives a substantial share of that yield.
Bloomberg’s analysts estimate Coinbase’s USDC-related revenue could increase two to seven times under favorable conditions.
The upper end of that range assumes Coinbase can continue offering rewards to customers who hold USDC.
That issue nearly derailed early versions of the legislation.
In January, Coinbase CEO Brian Armstrong paused support for a draft bill that threatened stablecoin rewards.
After discussions at the White House, he later said there is now “a path forward.”
If yield programs remain intact, USDC growth could accelerate further. Without them, growth may be slower — but still meaningful.
How Coinbase Makes Money From USDC
Coinbase does not issue USDC — Circle does.
But the companies have structured a partnership that makes Coinbase one of the largest beneficiaries of USDC growth.
After restructuring their relationship in 2023:
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Coinbase keeps 100% of the interest earned on USDC held directly on its platform.
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For USDC held elsewhere — on other exchanges, in DeFi protocols, or in corporate treasuries — Coinbase and Circle split reserve income 50/50.
Because Coinbase is the largest U.S. crypto exchange and operates the Base blockchain, a significant share of USDC sits within its ecosystem.
In 2024, Circle paid Coinbase more than $900 million in distribution and revenue-sharing fees — reportedly more than Circle retained for itself after expenses.
Coinbase then uses part of its share to fund USDC rewards for customers, making the stablecoin more attractive than holding traditional cash or competing stablecoins.
Stablecoin income has now become Coinbase’s second-largest revenue stream after trading.
The Circle Connection
The financial alignment between Coinbase and Circle runs deeper.
Coinbase co-founded the Centre Consortium with Circle in 2018 to govern USDC.
In 2023, the partnership was simplified: Circle assumed full operational control of USDC, and Coinbase received a minority equity stake in Circle in exchange for its share of the consortium.
Circle granted Coinbase approximately 8.4 million shares as part of the restructuring.
When Circle went public in June 2025, Coinbase recorded substantial unrealized gains — contributing to a $1.5 billion quarterly windfall.
While the exact ownership percentage has not been disclosed, Coinbase’s stake is large enough to require its approval for certain strategic deals.
This includes Circle’s revenue-sharing partnership with Binance.
The result is a tightly aligned relationship. Both companies benefit when USDC adoption expands.
Coinbase has made USDC the default stablecoin across its platform, Base blockchain, Coinbase Wallet, and new payment integrations with partners such as Stripe and Shopify.
Circle, in turn, benefits from Coinbase’s regulatory standing and distribution reach.
Stablecoins Emerge as Coinbase’s Main Event
For years, Coinbase’s business was synonymous with trading activity. Now, stablecoins are emerging as a second pillar — one less volatile and potentially more scalable.
If USDC evolves from a trading tool into a mainstream payments rail, Coinbase stands to capture a significant share of the economics.
The shift could reshape how investors value the company: not just as a crypto exchange, but as a key financial infrastructure player in a digital-dollar economy.
Whether adoption reaches Bloomberg’s most optimistic scenario remains uncertain. But one thing is clear — the stablecoin business is no longer a side operation for Coinbase.
It may be the main event.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
