Coinbase Emerges as Major Force Behind USDC Growth, Says Bernstein

Crypto exchange Coinbase (COIN) is evolving from simply distributing USDC into becoming one of the stablecoin’s most influential champions across payments and financial services, according to a new research report from Wall Street brokerage Bernstein released on Wednesday.

The firm recently rolled out Coinbase Payments, developed alongside Stripe and Shopify, and launched Coinbase Business, which focuses on startups and small enterprises. Both new offerings integrate Circle’s USDC stablecoin, reinforcing Coinbase’s push into practical use cases for stablecoins.

In the derivatives market, Coinbase has also collaborated with Nodal Clear, allowing USDC to be used as collateral for U.S. futures trading.

Bernstein analysts, led by Gautam Chhugani, noted that Coinbase’s Base blockchain has hosted more than $3.7 billion in USDC while processing a staggering $6.8 trillion in USDC-related settlement volume so far this year.

Coinbase holds a direct equity stake in Circle (CRCL), USDC’s issuer, and participates in a revenue-sharing arrangement tied to the stablecoin.

“Under the revised revenue-sharing deal, Coinbase retains 100% of the interest income from USDC held directly on its platform,” Chhugani explained. “For USDC held off-platform, revenue is split evenly between Coinbase and Circle.”

Stablecoins, which maintain their value by pegging to assets like the U.S. dollar or gold, are a cornerstone of the crypto ecosystem, often used for global payments and market transactions.

Chhugani highlighted that revenues tied to stablecoins have become increasingly significant for Coinbase. The exchange’s non-trading revenue has soared from $181 million in 2020 to $2.8 billion in 2024, now representing 42% of its overall revenue.

This transformation reflects Coinbase’s broader ambition to expand USDC’s utility across payments and decentralized finance (DeFi), positioning the stablecoin as a vital engine of long-term growth beyond mere trading activities, the report said.

Bernstein maintains an outperform rating on both Coinbase and Circle, setting price targets at $510 and $230, respectively.