Coinbase Outperforms Circle in USDC Revenue despite Stablecoin’s Growth

Recent IPO filings have revealed that Coinbase is generating more revenue from the USD Coin (USDC) stablecoin than Circle, raising questions about the future of USDC issuer. Despite Circle’s impressive financial performance with a $1.7 billion revenue in 2024 and nearly $285 million EBITDA, its largest expense was $908 million for distribution by Coinbase. This reveals Coinbase’s significant market share in the stablecoin ecosystem, despite Circle’s substantial growth. Notably, Circle projected potential losses of $414 million if the Federal Reserve lowers interest rates significantly, a factor that could influence the stability of USDC.