Coinbase Expands Adoption of USDC for Payments and Financial Services
Coinbase (COIN) is expanding its role in the stablecoin market, as noted in a Bernstein report. Key developments include:
- Launch of Coinbase Payments, in collaboration with Stripe and Shopify.
- Introduction of Coinbase Business, targeting startups and small companies, both utilizing Circle's USDC stablecoin.
- Partnership with Nodal Clear to use USDC as collateral in U.S. futures markets.
- Base blockchain has processed over $6.8 trillion in USDC-related settlements year-to-date.
Coinbase holds a direct equity stake in Circle (CRCL) and benefits from a revenue-sharing agreement. They receive 100% interest income from USDC held on their platform, while off-platform holdings are split 50:50 with Circle.
Stablecoin revenue significantly contributes to Coinbase's financials, growing from $181 million in 2020 to $2.8 billion in 2024, now accounting for 42% of total revenue. Bernstein rates Coinbase and Circle as outperformers, with price targets of $510 and $230, respectively.