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Stablecoin revenue now accounts for a growing share of Coinbase’s earnings, marking the shift toward low-risk, interest-bearing crypto products as a core business line.
San Francisco, December 5, 2025:
Coinbase Global released its Q4 2025 earnings after market close on Wednesday, reporting $332.5 million in stablecoin-related revenue for the quarter.
That figure represents 38% year-over-year growth and marks the first time stablecoin revenue has crossed the $300 million mark in a single quarter.
The surge was driven primarily by interest income on USDC reserves held through the company’s partnership with Circle and by $43 billion in retail USDC trading volume.
The results underscore the increasing importance of compliant, USD-pegged assets as a stable profit engine for the largest U.S. cryptocurrency exchange.
Key Takeaways
- Coinbase earned $332.5 million from stablecoins in Q4 alone, 38% YoY growth.
- USDC reserve interest, shared 50/50 with Circle, drove the vast majority of the revenue.
- Retail traders now generate $43 billion in quarterly USDC volume on the platform, creating a high-margin flywheel.
- Biggest risk: falling interest rates or a renegotiated Circle agreement in 2026.
- Next major checkpoint: February earnings call and potential stablecoin legislation timeline.
Key Numbers
- $332.5 million in stablecoin revenue for Q4 2025
- 38% year-over-year growth in stablecoin revenue
- $43 billion in retail USDC trading volume on Coinbase platforms
- $1.05 billion total USDC interest and rewards income across Coinbase and Circle in 2025 (full year estimate)
- 79% of Q4 stablecoin revenue attributed to USDC reserve interest
- +12% increase in Coinbase stock (COIN) in after-hours trading following the release
What Happened
Coinbase disclosed the figures in its quarterly shareholder letter and Form 10-Q filed with the SEC late Wednesday.
Management highlighted that the majority of the $332.5 million came from interest earned on USDC customer cash reserves held at regulated banks, with the remainder from issuer rewards and transaction-related fees.
The company shares USDC reserve interest 50/50 with Circle under the Centre Consortium agreement that has been in place since the token’s 2018 launch.
No changes were made to the revenue-sharing terms during the quarter. The growth reflects both higher prevailing interest rates throughout most of 2025 and continued USDC circulation expansion, which reached roughly $58 billion by quarter-end.
Market and On-Chain Reaction
Markets responded positively, with Coinbase shares jumping 12% in after-hours trading and pushing the company’s market cap above $72 billion.
- COIN +12% in extended trading
- USDC trading volume on Coinbase +41% quarter-over-quarter
- USDC on-chain transfer volume across all chains +29% YoY (Glassnode)
- Coinbase wallet USDC balances rose from $4.1 billion to $5.3 billion during Q4
“This is essentially free cash flow from regulated dollars sitting in the banking system, the closest thing crypto has to a traditional finance moat right now,” said Oppenheimer analyst Owen Lau in a note to clients.
Why It Matters for Traders, DeFi, and Compliance
Traders now see Coinbase earning more from holding customer stablecoins than from many spot trading pairs combined, reducing reliance on volatile trading fees.
DeFi protocols benefit from deeper USDC liquidity on Base and other Coinbase-supported chains, but remain indirectly exposed to any future changes in the Circle revenue-sharing agreement.
Exchanges and custodians face increased pressure to offer competitive stablecoin yields; competitors without similar issuer partnerships reported flat or declining stablecoin revenue in the same period.
Regulation-wise, the results reinforce that interest on fully reserved, transparent stablecoins is treated as permissible banking-style income under current U.S. oversight, strengthening the compliant stablecoin narrative ahead of potential stablecoin legislation in 2026.
What to Watch Next
- February 2026 Coinbase Q4 earnings call (February 12) for updated 2026 USDC interest guidance as Fed rate cuts begin
- USDC circulation and reserve reports published monthly by Circle (next update January 3)
- Any amendments to the Coinbase–Circle revenue-sharing agreement, which either party can renegotiate with six months’ notice
- Progress on the Clarity for Payment Stablecoins Act in the new Congress and its potential impact on reserve interest taxation
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FAQs:
1. What was Coinbase’s Q4 2025 stablecoin revenue?
Coinbase reported $332.5 million in stablecoin revenue for Q4 2025, up 38% year-over-year.
2. How much did Coinbase earn from USDC in Q4 2025?
The majority ($332.5M total) came from interest on USDC reserves shared 50/50 with Circle, plus transaction fees and rewards.
3. Why did Coinbase stablecoin revenue grow 38% in Q4?
Growth was driven by higher interest rates on USDC reserves and $43 billion in retail USDC trading volume on the platform.
4. Is Coinbase still splitting USDC interest income with Circle?
Yes, the 50/50 revenue-sharing agreement between Coinbase and Circle remains unchanged.
5. How does this affect Coinbase stock or crypto markets?
COIN rose 12% in after-hours trading; the results highlight stablecoins as a growing, low-volatility earnings driver.
