Coinbase Faces Potential Loss of Stablecoin Rewards, Projected Revenue of $1.3 Billion by 2025
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Legislative Risk: Coinbase may withdraw support for a key digital asset market structure bill due to proposed restrictions on stablecoin rewards, which could directly impact user attraction to USDC and subsequently affect the company's revenue model.
- Revenue Dependency: Coinbase shares interest income from USDC reserves with Circle Internet Financial, a crucial mechanism during market downturns, with projected revenue reaching approximately $1.3 billion by 2025, highlighting its reliance on stablecoin rewards.
- Market Dynamics Shift: If legislative restrictions are enacted, users may migrate their USDC holdings to other platforms that can still offer rewards, altering the supply and demand dynamics of USDC and impacting Coinbase's competitive position in the market.
- International Competitive Pressure: Coinbase's policy officer emphasizes that stablecoin rewards are vital for maintaining dollar competitiveness, especially as China plans to offer interest on its digital yuan, potentially putting the U.S. at a disadvantage in the digital currency space.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
