Circle issues new USDC tokens – experts predict revenue growth

The new issuance of USDC and increasing regulatory pressure in Washington are placing stablecoins at the center of a strategic battle that could reshape revenue models across the crypto industry.

Circle has issued an additional 500 million USD in USDC, according to data from Arkham, at a time when Coinbase’s stablecoin revenue is becoming a key driver for the business.

Analysis by Bloomberg Intelligence reports that Coinbase’s stablecoin revenue – linked to interest income sharing from USDC reserves in partnership with Circle – could grow between two and seven times if the use of USDC in payments accelerates.

In 2025, stablecoins accounted for 19% of Coinbase’s total revenue. The company generated approximately 1 350.00 million USD in stablecoin revenue for the year, compared to 911 million USD in 2024. In the fourth quarter of 2025 alone, stablecoin revenue amounted to 364 million USD.

This comes despite a reported net loss of 667 million USD for Q4 2025. In contrast to volatile trading fees, interest income on USDC balances is emerging as a more stable and highly profitable line in the exchange’s financial statement.

Stablecoins move out of the niche

Stablecoin usage reached record scales in 2025. Total transaction volume exceeded 33 trillion USD, with USDC accounting for approximately 18.3 trillion USD, overtaking Tether (USDT), although Tether continues to lead in market capitalization.

However, the growth in usage has placed stablecoins at the heart of the political and regulatory debate. In July 2025, President Donald Trump signed the GENIUS Act, which established a federal framework for payment stablecoins and explicitly prohibited issuers from paying interest or yield to holders.

The banking lobby supported this provision, arguing that yield-bearing stablecoins could pull deposits away from the traditional banking system.

The battle for yield

Within the negotiations for the Digital Asset Market Clarity (CLARITY) Act, an expansion of the ban is being discussed to also cover non-issuing partners – including exchanges like Coinbase – that offer “rewards” funded by interest income on reserves.

According to an early version of the Senate text, Coinbase’s ability to share part of this income with users could be restricted. In January, the company withdrew its support for the bill, objecting to such limitations.

Coinbase receives a share of the interest income from USDC reserves through its agreement with Circle, with the distribution depending on the volume of USDC distributed.

CEO Brian Armstrong told investors that if Congress bans the payment of rewards, the company would retain a larger portion of the revenue share – which would increase the margin for the stablecoin line, but at the expense of consumer yield.

The stablecoin sector is increasingly becoming strategic infrastructure for payments rather than just a tool for crypto trading. However, the question of who receives the yield from the reserves is emerging as the next key line of tension between the industry, banks, and lawmakers in Washington.