Bloomberg Report: Coinbase’s USDC Revenue May Increase as Payment Usage Grows

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TLDR

  • Bloomberg Intelligence stated that Coinbase might multiply its USDC revenue if the use of USDC for payments continues to increase.
  • Coinbase reported $1.35 billion in stablecoin revenue last year due to the growth of interest income on reserves.
  • USDC processed approximately $18.3 trillion in transactions last year, outperforming other stablecoins in terms of volume.
  • The GENIUS Act prohibited issuers from paying yields, imposing new restrictions on stablecoin rewards.
  • The draft language in the CLARITY Act could prevent exchanges from offering USDC rewards to customers.

As stablecoin regulations progress, the company faces new pressure. Analysts anticipate faster revenue growth, and investors are closely monitoring the debate. Coinbase expanded its stablecoin business through its partnership with Circle, and the company reported significant changes in quarterly income. The market is now observing how new policy measures could reshape the rewards that support ongoing user activity.

Coinbase USDC Revenue Outlook

Bloomberg Intelligence indicated that Coinbase could significantly expand its stablecoin revenue if the use of USDC for payments grows rapidly. They associated this outlook with the increasing activity of USDC and pointed to the high interest income from reserves. Coinbase reported $1.35 billion in stablecoin revenue last year and regarded this as a key driving factor.

The company recorded $364 million from stablecoins in the fourth quarter and emphasized the stability of this income stream. It compared this income with trading fees and stated that high interest rates increased the returns on reserves. The firm said that the use of USDC keeps growing and expects more payment – related activities.

Stablecoin transactions reached new highs last year, and USDC handled about $18.3 trillion. Tether still leads in terms of market capitalization and maintains a strong user base. Coinbase continued to expand its distribution channels with Circle and highlighted the shared economic benefits in public announcements.

Management mentioned the broader trend towards on – chain transfers and informed holders that the rising demand is shaping the company’s plans. The company views stablecoins as core tools for transfers and believes that this trend provides new revenue opportunities. It also confirmed its continuous focus on efficient operations and emphasized the importance of stable yields.

Policy Pressure on Stablecoin Rewards and Exchanges

Lawmakers took new steps through the [missing act name], barring issuers from paying interest. This act established a federal system for payment stablecoins and set limits on direct returns. The banking sector supported this rule, arguing that yields could lead to a shift in deposits.

Senators drafted the CLARITY Act, and the draft text could further expand the limits on rewards. This language could cover affiliates and prevent exchanges from passing on interest. Coinbase withdrew its support in January and opposed the parts that affected its reward plans.

The company earns a share of the reserve interest and splits this income with Circle. Brian Armstrong told investors that a reward ban could increase the firm’s share, but users would lose their returns. He added that the firm will make adjustments and that the business model remains robust.

Senator Bernie Moreno said that the [missing bill name] could be passed soon and pointed to the progress in the negotiations. The bill combines elements of the CFTC and SEC and includes stricter yield terms. Lawmakers continued their negotiations this week, and the Senate reviewed the updated text.