Coinbase Global, Inc. may be poised for a significant revenue increase thanks to the rising use of USD Coin (USDC) as stablecoins become more prevalent in payment systems, according to insights from Bloomberg Intelligence. Analysts predict that income derived from USDC—encompassing both Coinbase’s share of interest and fees on reserves—could potentially multiply by two to seven times if adoption rates continue to rise.
In 2025, revenue stemming from stablecoins constituted 19% of Coinbase’s overall income, underscoring the increasing significance of this asset in the company’s financial landscape. The potential for further growth is largely linked to the utilization of USDC beyond mere trading applications, particularly in payments, remittances, and merchant services. Notably, total stablecoin transactions reached a staggering $33 trillion in 2025, with USDC representing over $18 trillion of that volume.
As businesses and consumers increasingly adopt stablecoins, Coinbase stands to profit substantially from transaction fees and interest accrued on USDC reserves—revenue sources that are not only high-margin but also more stable compared to traditional trading fees. However, regulatory developments will be pivotal in influencing this revenue potential. The Genius Act, which was enacted in 2025, mandates that stablecoins be fully backed by high-quality assets but places restrictions on direct interest payments to holders. Future legislative efforts, such as those related to the proposed CLARITY Act, may impose additional constraints on how platforms like Coinbase generate earnings from stablecoins.
In light of these regulatory challenges, CEO Brian Armstrong has cautioned that limiting rewards could impede the broader adoption of stablecoins. Nevertheless, he has indicated that the company is prepared to adapt its revenue-sharing structures to maintain profitability.
Despite the regulatory uncertainties surrounding stablecoins, analysts view this sector as a strong growth avenue for Coinbase. Should USDC adoption continue to expand, what was once a minor revenue stream could evolve into a significant contributor to the company’s profitability in the forthcoming years.
However, Coinbase is grappling with several operational and market challenges that might dampen its growth trajectory. Recently, a technical outage interrupted global trading activities, revealing the operational risks that could have detrimental effects on both revenue and user trust. Additionally, concerns among investors were heightened following CEO Armstrong’s sale of 1.5 million shares.
In spite of these challenges, the market appears to reflect resilience, as evidenced by a trend of “dip-buying” following quarterly losses. This behavior suggests that investors continue to maintain confidence in Coinbase’s long-term outlook. Alongside growing adoption of stablecoins, these dynamics indicate that while immediate pressures persist, Coinbase is well-positioned to enhance its USDC-driven revenue in the coming years.
