The post Coinbase Eyes Circle for Control Over USDC Revenue Growth appeared on BitcoinEthereumNews.com.

Coinbase may acquire Circle to strengthen its stablecoin and protocol-level position.  The acquisition would allow multichain integrations for Coinbase Wallet and Base.  Coinbase’s USDC shares hit 23% of total supply, making it the second-largest source of revenue. In a surprising revelation, Ryan Y Yi, a former member of Coinbase Ventures, the investment arm of the U.S.’s largest crypto exchange, Coinbase, has hinted at the possibility of the U.S.- based crypto exchange acquiring Circle, the USDC stablecoin issuer. In an X post, Yi stated that the strategic move would allow Coinbase to capitalize on USDC’s growing importance. According to Yi, Coinbase’s share of USDC circulation has experienced significant growth. As of Q1 2025, Coinbase’s USDC shares had reached around 23% of the stablecoin’s total supply, reflecting rapid growth. Additionally, USDC has become Coinbase’s second-largest source of revenue. Hence, Yi argued that acquiring the Circle outfit would be strategic and allow the crypto exchange to capture USDC-related revenue fully. Yi clarified Coinbase’s current position per revenue from its USDC shares, explaining that the exchange only earns full reserve income on on-platform USDC and splits off-platform income 50/50 with Circle despite holding four times more USDC. Meanwhile, Coinbase plays a significant role in the adoption of USDC. Revenue Gains Drive Rumors Considering Coinbase’s current status per USDC shares, the revenue-sharing model limits the crypto exchange’s ability to scale its customer and developer-facing products. According to Yi, the current situation does not bestow protocol-level control on Coinbase. Therefore, he believes acquiring Circle will eliminate that constraint. Related Articles: ​​Coinbase Puts a Stop to USDC Yields in Europe: MiCA Isn’t Helping Additionally, Yi added that by acquiring Circle, Coinbase would get full revenue attribution on USDC and governance over the USDC protocol. It will also allow multichain integrations and strategic flexibility across key products like Coinbase…

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Filed under: News - @ May 31, 2025 2:19 pm