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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.
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.
Read more: Coinbase Is the Most Misunderstood Business in Crypto, Says Analyst With Highest Wall Street Price Target
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