JPMorgan: Coinbase Could Gain $60B From USDC-Circle Ecosystem

A new report from JPMorgan is shedding light on the staggering upside potential of Coinbase’s partnership with Circle and its deep exposure to the USDC stablecoin.

According to the bank, Coinbase shareholders could benefit from $55 to $60 billion in total value tied to Circle-related economics—an estimate that may be significantly underestimated by current market sentiment.

While Coinbase’s 8.5 million Circle shares—valued at $1.6 billion as of July 25—represent a major equity stake, JPMorgan argues that the bigger opportunity lies in USDC-linked revenue streams. These income sources are not only consistent but highly profitable.

In Q1 2025 alone, Coinbase earned $300 million in distribution payments from Circle, a figure that exceeds Circle’s own quarterly net revenue of $230 million. This stark contrast highlights how the partnership disproportionately benefits Coinbase through mechanisms like shared reserves and platform distribution.

The bank also broke down Coinbase’s USDC balances into two distinct sources of revenue. On-platform, the exchange held $13 billion in USDC, generating $125 million in revenue at 20–25% margins. Meanwhile, off-platform reserves—which include funds held in Circle’s Reserve Fund—are even more lucrative. Coinbase reportedly earned $170 million last quarter from this split, at nearly 100% margin.

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This revenue model gives Coinbase a rare edge in the crypto industry: a high-margin, predictable stream of stablecoin income that is less volatile than trading fees or token listing activity. It also strengthens the platform’s ability to weather market downturns and fund new initiatives without relying heavily on retail volume.

JPMorgan’s analysis suggests that the market may be underpricing Coinbase’s embedded role in the USDC ecosystem, which remains one of the most trusted and widely integrated stablecoins in the space. As regulatory clarity around stablecoins improves, this positioning could give Coinbase a long-term moat few competitors can match.

For investors and analysts watching the next growth frontier in crypto infrastructure, the Coinbase–Circle partnership may prove to be one of the most strategically valuable relationships in the industry today.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.