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- Stablecoin interest income now accounts for 19% of Coinbase’s total revenue.
- USDC outperformed USDT in 2025 transaction volume, reaching $18.3 trillion.
- New legislation could ban user rewards, ironically making USDC more profitable for Coinbase.
The narrative surrounding Coinbase centered on the volatility of retail trading. However, the company’s 2025 financial data suggests a structural shift is underway. While the exchange reported a net loss of $667 million in the fourth quarter of 2025, a quieter, more consistent revenue stream is becoming the firm’s backbone: the stablecoin.
According to Bloomberg Intelligence, Coinbase’s revenue share from USDC now accounts for 19% of its total income. In a year defined by record-breaking onchain activity, stablecoins generated $1.35 billion for the firm, up significantly from $911 million in 2024. This high-margin interest income is proving far more reliable than the unpredictable ebb and flow of trading fees.
A Dominant Force in Onchain Payments
The scale of the stablecoin market has reached a fever pitch. In 2025, total transaction volume across the industry hit $33 trillion. While Tether (USDT) maintains a higher market capitalization, USDC has emerged as the leader in utility. Last year, USDC facilitated $18.3 trillion in transactions, signaling its status as the preferred medium for payments and institutional transfers.
Bloomberg analysts suggest this is only the beginning. If USDC adoption in global payments continues to accelerate, Coinbase’s revenue from this segment could grow by two to seven times, fundamentally decoupling the company’s valuation from the “crypto winter” cycles of the past.
The Legislative Battle Over Yield
This rapid growth has placed Coinbase in the crosshairs of Washington. The GENIUS Act, signed by President Trump in July 2025, established a federal framework for stablecoins but strictly prohibited issuers from paying interest to holders. Now, the focus has shifted to the Digital Asset Market Clarity (CLARITY) Act.
Traditional banking lobbyists are pushing for even tighter restrictions. They argue that yield-bearing digital assets threaten the stability of traditional bank deposits. Specifically, they want to close “loopholes” that allow exchanges to pass interest income back to users in the form of “rewards.”
Also Read: Coinbase Wins Key Delay in Nevada as Bitcoin Data Signals Institutional Selling Surge
Navigating the “CLARITY” Loophole
Coinbase recently withdrew its support for the CLARITY Act, citing these restrictive provisions. However, CEO Brian Armstrong has noted a paradoxical silver lining: if Congress bans user rewards, Coinbase would simply retain a larger share of the interest income it splits with Circle. While users would lose their yield, the stablecoin line would actually become more profitable for the exchange.
As Senator Bernie Moreno eyes an April deadline for the CLARITY Act to clear Congress, the stakes couldn’t be higher. For Coinbase, the outcome of this legislative fight may dictate its financial health more than any Bitcoin price rally ever could.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
