USDC Economics and Circle Relationship Drive Stronger Returns for Coinbase: JPMorgan

JPMorgan Highlights Coinbase’s Growing Revenue From Circle Partnership and USDC

Coinbase (COIN) is seeing significant financial benefits from its collaboration with Circle (CRCL) and involvement with the USDC stablecoin, generating both equity value and strong revenue streams, according to a new JPMorgan report.

The investment bank values the total economic impact of Circle on Coinbase shareholders between $55 billion and $60 billion, suggesting that the market may be underestimating USDC’s strategic importance for Coinbase.

Coinbase owns approximately 8.5 million Circle shares, worth about $1.6 billion as of late July. But the main revenue driver lies in USDC-related income.

In the first quarter of 2025 alone, Coinbase earned roughly $300 million in distribution payments from Circle—surpassing Circle’s total net revenue of $230 million for the period.

Additionally, Coinbase held $13 billion in USDC balances on its platform at the end of Q1, producing $125 million in revenue with margins estimated between 20% and 25%.

Off the platform, Coinbase receives half the income from Circle’s Reserve Fund, adding $170 million last quarter with nearly 100% margins.

Despite these strong earnings, JPMorgan maintains a neutral rating on Coinbase stock with a price target of $404. Shares traded near $381 early Tuesday.