Paul Johnson Coinbase USDC revenue could rise up to sevenfold as stablecoin payments expand and Congress debates reward restrictions under the CLARITY Act, reshaping the exchange’s income model.
Coinbase USDC revenue positioned for massive growth amid shifting stablecoin policies
Coinbase USDC revenue could experience exponential growth in 2026 as stablecoin adoption in payments continues to gain traction and U.S. policymakers fine tune the rules that govern yield distribution. According to a new analysis by Bloomberg Intelligence, Coinbase’s income from its partnership with Circle on the USD Coin could soar as much as seven times from current levels if usage momentum sustains.
While the digital asset exchange reported a net loss of $667 million in the fourth quarter of 2025, its expanding stablecoin business has emerged as a bright spot. Coinbase generated approximately $1.35 billion in stablecoin income last year, up sharply from $911 million in 2024. The growth underscores how interest income from USDC balances has evolved into a reliable and high margin stream that contrasts the volatile trading revenue dependent on market cycles.
Stablecoin payments reshape exchange economics
Stablecoins have quietly transformed into one of the most important pillars of the digital asset economy. Total stablecoin transaction volume reached a record $33 trillion in 2025, with USDC contributing around $18.3 trillion. This milestone placed USDC ahead of Tether’s USDt by transaction value, even though Tether still dominates in terms of overall market capitalization.
The surge in stablecoin transactions reflects a major structural shift in how digital dollars circulate globally. Merchants, fintech companies, and onchain applications increasingly prefer USDC for instant settlement and regulatory clarity. As a result, Coinbase USDC revenue has grown to represent roughly 19 percent of total company revenue in 2025. That share could multiply if adoption for payments continues to expand.
The payment use case is proving far more stable than speculative trading activity. Every USDC in circulation is backed by short term U.S. Treasuries, and the interest on those reserves has become a dependable source of returns for Coinbase and Circle. The companies share that revenue based on distribution agreements, with Coinbase benefiting directly from the amount of USDC it helps circulate through its platform.
Policy debate intensifies over stablecoin yield rules
The growing role of stablecoins has ignited intense political debate in Washington. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law by President Donald Trump in July 2025, created the first comprehensive federal framework for payment stablecoins. However, the law also explicitly prohibits issuers from paying any yield or interest to holders, a move widely supported by traditional banks concerned about potential deposit flight.
Now, lawmakers are weighing an expansion of that restriction under the Digital Asset Market Clarity (CLARITY) Act of 2025. The proposed legislation could close what banks see as a loophole that still allows non issuer affiliates such as Coinbase to pass a share of reserve interest to customers as rewards. The Senate draft reportedly includes provisions that would prevent exchanges from offering any yield tied to stablecoin balances.
Coinbase withdrew its support for the CLARITY Act in January after objecting to these specific measures. CEO Brian Armstrong indicated to investors that while a ban on rewards might reduce customer incentives, it could paradoxically make Coinbase USDC revenue even more profitable. Without sharing yield with users, the exchange could retain a larger portion of its revenue share from Circle, enhancing margins even as customers lose access to interest rewards.
CLARITY Act could redefine the stablecoin economy
The CLARITY Act, which seeks to delineate authority between the Commodity Futures Trading Commission and the Securities and Exchange Commission, is now progressing through the Senate. Senator Bernie Moreno has suggested that Congress could approve the measure as early as April. The outcome of these negotiations will likely shape the next phase of the stablecoin market and determine how platforms like Coinbase structure their incentive systems.
For Coinbase, the implications are significant. With stablecoins already representing a fifth of total income, the new legislative direction will determine whether the company’s future growth depends on customer incentives or internal retention of stablecoin profits. If regulatory clarity supports broader use of USDC in payments, Coinbase USDC revenue could climb dramatically, reinforcing the company’s position as one of the leading global facilitators of onchain dollar transactions.
Beyond the direct revenue impact, the rise of USDC payments signals a fundamental reordering of how digital asset businesses derive value. Rather than relying solely on speculative market cycles, Coinbase is aligning its business model around predictable, fiat linked income streams that scale with global transaction demand.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
