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By Will Canny, AI Boost|Edited by Stephen Alpher
Updated Jul 2, 2025, 4:19 p.m. Published Jul 2, 2025, 4:15 p.m.
- Coinbase is actively building USDC infrastructure to drive adoption across e-commerce and small businesses, according to a new report from Bernstein.
- Strategic partnerships with Stripe, Shopify, and Nodal Clear are extending USDC’s use in merchant payments and U.S. futures markets, the report noted.
- Stablecoins are are now a core revenue stream for the crypto exchange, with non-trading income growing to 42% of total revenue in 2024.
Crypto exchange Coinbase (COIN) is moving beyond its role as a USDC distributor, positioning itself as a key driver of stablecoin adoption across payments and financial services, Wall Street broker Bernstein said in a research report Wednesday.
The company recently launched Coinbase Payments, built in collaboration with Stripe and Shopify, and also introduced Coinbase Business, targeting startups and smaller companies. Both services use Circle’s USDC stablecoin.
STORY CONTINUES BELOW
In derivatives, Coinbase partnered with Nodal Clearto use USDC as collateral in U.S. futures markets.
The crypto exchange’s Base blockchain has hosted over $3.7 billion in USDC and has processed $6.8 trillion in USDC-related settlement volume year-to-date, Bernstein analysts, led by Gautam Chhugani, wrote.
Coinbase owns a direct equity stake in Circle (CRCL), the issuer of USDC, and also has a revenue sharing agreement for the stablecoin.
“Under the new revenue sharing agreement, Coinbase received 100% of the interest income from USDC held directly on its platform, and for the USDC held off-platform, Coinbase and Circle split the revenue 50:50,” said Chhugani.
Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally.
Stablecoin revenues have become a major contributor to Coinbase’s bottom line, Chhugani continued. Non-trading revenue grew from $181M in 2020 to $2.8 billion in 2024, now accounting for 42% of total revenue.
The shift underscores Coinbase’s incentive to scale USDC utility across payments and decentralized finance (DeFi), anchoring it as a long-term growth engine beyond trading, the report added.
Bernstein has an outperform rating on both Coinbase and Circle, with respective price targets of $510 and $230.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He’s now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
