JPMorgan Highlights Coinbase’s Growing Revenue from Circle Partnership and USDC
Coinbase’s (COIN) strategic relationship with Circle (CRCL) and its stake in the USDC stablecoin ecosystem are proving highly lucrative, driving both equity appreciation and strong revenue growth, according to a new JPMorgan report.
The bank estimates that the value Coinbase derives from its Circle ties could total between $55 billion and $60 billion, suggesting investors may be undervaluing the importance of USDC within Coinbase’s business model.
Coinbase currently owns about 8.5 million shares of Circle, worth around $1.6 billion as of late July. Yet the bulk of the financial upside stems from revenue generated via USDC-related activities.
In the first quarter of 2025 alone, Coinbase collected roughly $300 million in distribution payments from Circle — surpassing Circle’s entire net revenue of $230 million over that period.
JPMorgan also points out that Coinbase held approximately $13 billion in USDC balances on its platform at the end of Q1, which translated to about $125 million in revenue with profit margins estimated between 20% and 25%.
Off-exchange, Coinbase receives 50% of the income from Circle’s Reserve Fund, adding another $170 million in high-margin revenue during the quarter.
Despite these robust earnings streams, JPMorgan maintains a neutral rating on Coinbase shares, assigning a price target of $404. The stock traded near $381 in early trading on Tuesday.
