The post Coinbase Circles USDC Profits, New Crypto to Explode appeared on BitcoinEthereumNews.com.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure What happens if you build the second-largest stablecoin in the world, with over $60B in market cap – but someone else earns most of the profits? That’s exactly the situation that Circle finds itself in with $USDC. But while it’s a bit awkward for Circle, $USDC’s success highlights a major crypto win, setting the stage for other new crypto to explode as the year progresses. Coinbase Earns Majority of the Revenue Share from $USDC Reserves A recent filing has unveiled that Coinbase Global receives 50% of the residual revenue generated from the reserves backing Circle’s $USDC stablecoin. This revenue-sharing agreement is influenced by the amount of $USDC held on Coinbase’s exchange, directly impacting Coinbase’s share of Circle’s reserve income. It’s a great deal for Coinbase, which made $908M off $USDC in 2024 and is one of the linchpins of the crypto economy with its established and upcoming token listings. And it’s not a one-off for the exchange: Instead, it’s part of a pretty decent business model for one of the world’s biggest crypto exchanges. In 2024, Coinbase reported net income of $4.68 per share; $COIN currently trades at $174 per share. The deal works out pretty well for Circle too. The company made $155M in net profit in 2024, and was the first stablecoin to be approved in Japan. With that $155M net coming off total revenue of $1.67B, Circle is ready to go public. No April Fools: Circling an IPO Date Reports indicate a substantial minting of 250M $USDC at the USDC Treasury, signaling increased demand for the stablecoin. Large-scale minting events often indicate heightened trading activity, growth in decentralized finance (DeFi) applications, or increased institutional adoption within the cryptocurrency market. In this case, the minting…

---

Filed under: News - @ April 2, 2025 11:20 am