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Coinbase Reaps Growing Rewards from Circle Ties and USDC Economics: JPMorgan
In the first quarter of this year alone, Coinbase earned roughly $300 million in distribution payments from Circle, and that's just the start.
Updated Jul 29, 2025, 12:13 p.m. Published Jul 29, 2025, 12:12 p.m.
What to know:
- Coinbase earned ~$300M from Circle in the first quarter of 2025, exceeding the Circle's own total net revenue, the report noted.
- USDC yields are boosting user growth, with Circle-funded incentives allowing Coinbase to attract customers at effectively zero or negative cost, the bank said.
- JPMorgan estimates Circle-related economics are worth as much as $60 billion to Coinbase shareholders.
Coinbase’s (COIN) partnership with Circle (CRCL) and exposure to Circle's USDC stablecoin is generating significant financial upside, both through equity appreciation and high-margin revenue streams, according to a new report from Wall Street bank JPMorgan.
The total value of Circle-related economics to Coinbase shareholders is estimated at $55 to $60 billion, the bank said, suggesting the market may be underestimating the strategic importance of the USDC ecosystem.
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The crypto exchange holds 8.5 million shares in Circle, valued at $1.6 billion as of July 25. The larger story, however, lies in USDC-related income, according to the report.
In the first quarter of this year alone, Coinbase earned roughly $300 million in distribution payments from Circle, more than Circle’s total net revenue of $230 million.
The bank estimated that Coinbase had $13 billion in USDC balances on-platform at the end of the first quarter, generating $125 million in revenue at 20–25% margins.
Off-platform, Coinbase splits Circle Reserve Fund income 50/50, pulling in $170 million last quarter at nearly 100% margin, the report added.
The bank has a neutral rating on Coinbase stock with a $404 price target. The shares were around $381 in early trading Tuesday.
Read more: CoinDCX Dismisses Report of Coinbase Acquisition Talks
AI 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. For more information, see CoinDesk's full AI Policy.
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