USDC stablecoin economics (Circle)
Average USDC held in Coinbase products hit a record $20 billion in Q2 2026. Stablecoin revenue was $292 million in the same quarter.
The numbers
What it is
Coinbase earns a share of the reserve income from USDC balances that its platform holds, under an agreement with Circle, which issues USDC. Revenue rises with the share of USDC that sits on Coinbase. The Q2 2026 10-Q says there is no change to the Circle arrangement or the revenue it generates.
Why it matters to the stock. USDC economics are the most rate-sensitive part of Coinbase's revenue: higher short-term rates and more USDC on the platform raise income. Traders follow average USDC on platform as a read on stablecoin adoption and interest-rate sensitivity.
News
Circle reports $73.3 billion USDC in circulation at Q2 end, the base for Coinbase's USDC revenue
Circle's Q2 2026 release, dated August 5, 2026, put USDC in circulation at $73.3 billion at quarter end, up 19% year over year, and average circulation at $76.5 billion, up 25%.
Senate Banking Committee advances the CLARITY Act 15-9
The Senate Banking Committee advanced the CLARITY Act on May 14, 2026 by a 15-9 vote.
Coinbase Q1 2026 revenue of $1.41B, down 30.5%; net loss $394M, adjusted EBITDA $303M
Coinbase's 10-Q for the quarter ended March 31, 2026 reports total revenue of $1.41 billion, down 30.5% from $2.03 billion a year earlier.
Coinbase Asset Management launches CUSHY, a tokenized stablecoin yield fund
Coinbase Asset Management announced on April 30, 2026 the Coinbase Stablecoin Yield Fund, known as CUSHY, for institutional investors.
CLARITY Act draft would bar stablecoin interest, a risk to Coinbase USDC income
A CoinDesk report on March 19 said the current CLARITY Act draft would bar stablecoin issuers from paying interest directly to holders, which matters for Coinbase's USDC economics.