Coinbase Boosts Circle’s USDC Adoption Across Payments and Finance, Says Bernstein

Bernstein: Coinbase Driving Broader Adoption of USDC Across Financial Services and Payments

Crypto exchange Coinbase (COIN) is transforming from merely distributing the USDC stablecoin to becoming a central force behind its expanding use in payments and financial services, according to a new report published Wednesday by Wall Street firm Bernstein.

The company recently launched Coinbase Payments, developed in partnership with Stripe and Shopify, as well as Coinbase Business, aimed at startups and small businesses. Both platforms are built around integrating Circle’s USDC, highlighting Coinbase’s strategic push to grow real-world use cases for stablecoins.

In the derivatives sector, Coinbase has also joined forces with Nodal Clear to enable USDC to serve as collateral for U.S. futures markets.

Bernstein’s team, led by analyst Gautam Chhugani, reported that Coinbase’s Base blockchain currently holds over $3.7 billion in USDC, with settlement volumes tied to USDC reaching an impressive $6.8 trillion so far this year.

Coinbase not only has a direct equity investment in Circle (CRCL), the issuer of USDC, but also shares in revenue generated from the stablecoin’s operations.

“Under the revised revenue-sharing arrangement, Coinbase keeps 100% of the interest income on USDC balances held directly on its platform,” Chhugani explained. “For USDC held outside Coinbase’s platform, revenues are split evenly with Circle.”

Stablecoins, pegged to the value of traditional assets like the U.S. dollar or gold, remain fundamental to the crypto ecosystem, widely used for global payments and market transactions.

Chhugani highlighted that income from stablecoins has become a crucial part of Coinbase’s business. The exchange’s non-trading revenue has surged from $181 million in 2020 to $2.8 billion in 2024, now accounting for 42% of total revenue.

Bernstein noted this evolution reflects Coinbase’s broader goal to expand USDC’s role in payments and decentralized finance (DeFi), positioning the stablecoin as a key pillar for sustainable growth beyond crypto trading.

Bernstein has an outperform rating on both Coinbase and Circle, with target prices of $510 and $230, respectively.