Coinbase News: Coinbase Receives Half of Circle’s Residual Revenue from USDC Reserve

In a recent development that sheds light on the intricate financial arrangements within the cryptocurrency ecosystem, Coinbase Global has been revealed to be receiving a significant share of Circle’s residual revenue from the reserves backing its USDC stablecoin. Here’s a closer look at this partnership and its implications.

Coinbase Takes 50% Share of Circle’s Residual USDC Reserve Revenue

Crypto exchange provider Coinbase Global receives half of Circle’s residual revenue generated from reserves backing its USDC stablecoin, according to new details disclosed in Circle’s IPO filing. In an S-1 filing submitted to the Securities and Exchange Commission, Circle revealed Coinbase receives 50% of the “residual payment base”—a portion of revenue explicitly derived from reserves backing Circle’s flagship stablecoin pegged 1-to-1 to the U.S. dollar. Circle generates income primarily through reserve assets, essentially comprising highly liquid U.S. Treasury instruments and cash equivalents. The company earned $1.7 billion in revenue and reserve income in 2024, reporting net income of $156 million.

Kentucky Drops Lawsuit Against Coinbase, Joining Vermont and South Carolina

Kentucky has dropped its lawsuit against Coinbase on April 1, following similar actions by Vermont and South Carolina. Governor Andy Beshear signed House Bill 701 on March 24, supporting Bitcoin rights and staking protections. Additionally, Kentucky is considering investing 10% of its excess reserves in crypto, aligning with other crypto-forward U.S. states. The joint dismissal of the lawsuit by Kentucky’s Department of Financial Institutions and Coinbase ends the legal dispute tied to Coinbase’s staking rewards program.