Coinbase Sees 48% Jump in Stablecoin Revenue Amid Regulatory Changes

Coinbase has emerged as a significant beneficiary of the newly enacted GENIUS Act, a landmark piece of legislation that established a federal framework for stablecoin issuance and oversight. In July 2025, the Act was signed into law, setting the stage for a potentially transformative shift in the crypto world. For Coinbase, the new regulation has already translated into tangible gains, with stablecoin-related revenue jumping 48% to $1.35 billion in 2025, up from $911 million in 2024.

This revenue boost accounts for 19% of Coinbase's total annual income, highlighting the growing importance of stablecoins in its business model. Unlike the volatile swings seen with trading fees, stablecoin revenue derives from more predictable interest income. This income is generated from reserves backing Circle's USDC, primarily invested in U.S. Treasuries and other low-risk instruments. Such a model provides Coinbase with a stable and generally higher-margin revenue stream.

The GENIUS Act's national regulatory structure is expected to remove existing barriers, potentially accelerating the adoption of USDC in areas like cross-border payments and merchant settlements. The bigger question now is whether this regulatory clarity will lead to a broader uptake of stablecoins in real-world transactions, which would, in turn, expand USDC's circulation and the underlying reserves needed to support it.

According to two people familiar with the negotiations, analysts believe that Coinbase's USDC-related revenue could grow by two to seven times, depending on the adoption speed and whether customer reward schemes remain intact. Yet, even if rewards are curtailed, the clearer regulatory environment is expected to support meaningful growth.

With Coinbase's stock surging 22% to $185 during a trading session in October 2025, there's evident market enthusiasm. The crypto world will watch closely to see if these developments can sustain Coinbase's momentum in the coming years, potentially setting new precedents for the industry.