Coinbase generated nearly $300 million in Q1 2025 revenue through its partnership with Circle, exceeding Circle's own net revenue according to a JPMorgan report. The bank estimates the total value of Circle-related economics to Coinbase shareholders at $55-$60 billion, suggesting investors may undervalue the exchange's role in the USDC ecosystem.
Breakdown shows $125 million came from USDC balances held on Coinbase's platform ($13 billion in user reserves at 20-25% margins), while another $170 million resulted from a 50/50 split of Circle's Reserve Fund income. JPMorgan highlighted Coinbase's 8.5 million Circle shares (worth $1.6 billion) and noted USDC incentives drive user growth with minimal customer acquisition costs.
Regulatory developments amplify momentum: Circle applied for a U.S. national trust bank charter to oversee reserves, while the Senate passed the GENIUS Act for stablecoin clarity. Separately, Ant Group's international arm plans to integrate USDC onto its blockchain handling $1 trillion annual payments – pending U.S. approval – potentially making it the largest corporate user of U.S. stablecoins abroad.