Coinbase’s close ties with Circle and deep exposure to the USDC stablecoin ecosystem are proving to be a major financial win, according to a new report by JPMorgan. The Wall Street bank estimates that Circle-related economics could be worth $55 to $60 billion to Coinbase shareholders—an amount that may be undervalued by current market sentiment.
$300 Million Earned in Q1 Alone
In the first quarter of 2025, Coinbase (COIN) reportedly earned around $300 million from Circle, surpassing Circle’s own total net revenue, according to JPMorgan analysts. This revenue is primarily driven by the growing adoption and usage of USDC, the second-largest stablecoin by market cap.
“USDC yields are not only contributing directly to revenue but also fueling user growth,” the bank noted.
Incentives Driving User Growth
JPMorgan highlighted that Circle-funded USDC incentives have enabled Coinbase to attract users at little to no customer acquisition cost. In some cases, customer growth is even happening at a negative effective cost, meaning Coinbase profits while acquiring users.
This strategy mirrors successful fintech models where ecosystem incentives play a critical role in rapid expansion—except in this case, the benefit is amplified by high-margin stablecoin yield revenue.
USDC Ecosystem Offers Strategic Leverage
Coinbase holds an equity stake in Circle and plays a core role in the USDC consortium. As stablecoin usage surges—especially in decentralized finance (DeFi) and remittances—Coinbase is positioned to profit from both transactional volume and underlying interest income on reserves.
“The market may be underestimating just how important USDC economics are to Coinbase’s long-term valuation,” JPMorgan warned.
A $60 Billion Underrated Asset?
JPMorgan’s estimate of $55–$60 billion in value tied to Circle and USDC dwarfs Coinbase’s current market cap, highlighting potential upside if this value is priced in. This includes equity value, revenue sharing, and indirect network effects through broader adoption of USD Coin.
Disclaimer
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