Coinbase Plays Major Role in Expanding USDC Usage, Says Bernstein
According to a recent research note from Wall Street firm Bernstein, crypto exchange Coinbase (COIN) has evolved beyond simply distributing USDC and is now a major driver of the stablecoin’s broader adoption across payment systems and financial services.
Coinbase has recently introduced new initiatives, such as Coinbase Payments—created alongside Stripe and Shopify—and Coinbase Business, which targets startups and small enterprises. Both offerings integrate Circle’s USDC stablecoin, underlining Coinbase’s ambition to promote real-world applications for stablecoins.
The company is also working with Nodal Clear in the derivatives market, where USDC is being used as collateral for U.S. futures trades.
Bernstein analysts, led by Gautam Chhugani, highlighted that Coinbase’s Base blockchain has accumulated over $3.7 billion in USDC, while handling an impressive $6.8 trillion in USDC settlements so far in 2025.
Coinbase not only owns a direct equity stake in Circle (CRCL), the issuer of USDC, but also shares revenue generated from the stablecoin’s ecosystem.
Chhugani explained that, under a revised revenue-sharing arrangement, “Coinbase retains 100% of the interest earnings from USDC kept directly on its platform, whereas revenues from USDC held off-platform are split evenly with Circle.”
Stablecoins, which are tied to the value of assets like the U.S. dollar or gold, are a critical piece of the crypto infrastructure, used widely for cross-border payments and trading activity.
Chhugani also pointed out that stablecoin-related revenue has become an increasingly vital part of Coinbase’s financial picture. Non-trading revenue for the exchange has jumped from $181 million in 2020 to $2.8 billion in 2024, making up 42% of its total revenue.
Bernstein believes this evolution aligns with Coinbase’s larger vision to grow USDC’s use in both payments and decentralized finance (DeFi), viewing the stablecoin as a key engine for sustainable growth beyond traditional crypto trading.
The firm maintains an outperform rating on both Coinbase and Circle, with price targets of $510 for Coinbase and $230 for Circle.
