Crypto Exchange Coinbase (COIN) Moves beyond its role as USDC distributor and places himself as an important driving force for stablecoin passing across payments and financial services, Wall Street broker Bernstein said in a research report on Wednesday.
The company recently launched coinbase payments, built in collaboration with Stripe and Shopify and also introduced Coinbase Business, targeted at startups and smaller companies. Both services use Circle’s USDC StableCoin.
In derivatives, coinbase collaborated with Nodal Clear To use USDC as security in US futures markets.
Crypto Exchange’s Base Blockchain has hosted over $ 3.7 billion in USDC and has treated $ 6.8 trillion in USDC-related settlement volume to date, Bernstein analysts wrote, led by Gautam Chhugani.
Coinbase owns a direct equity in circle (CRCL)The issuer of USDC, and also has a revenue sharing agreement for stableecoin.
“According to the new revenue sharing agreement, Coinbase received 100% of the interest income from USDC, which was held directly on its platform and for USDC held off-platform, Coinbase and Circle split revenue 50:50,” said Chhugani.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets and are also used to transfer money internationally.
StableCecoin revenue has become an important contributor to Coinbases bottom line, CHHUGANI continued. Not traded revenue grew from $ 181 million. By 2020 to $ 2.8 billion in 2024, which now accounts for 42% of total revenue.
The shift underlines Coinbase’s incentive to scale USDC tools across payments and decentralized financing (Defi)Anchor it as a long -term growth engine beyond trade, the report added.
Bernstein has a better rating on both Coinbase and Circle with the respective price targets of $ 510 and $ 230.
Read more: Coinbase is the most misunderstood business in crypto, says analyst with the highest Wall Street target
