Coinbase Rivalry Sparks Concerns Over Circle's Revenue Deal

The cryptocurrency market has been experiencing a period of volatility, with Circle's shares taking a hit due to the possibility of Coinbase joining a rival stablecoin platform.

The platform is backed by Stripe, Visa, and Mastercard, which could potentially add fresh competition in stablecoin payments. According to a report, such infrastructure may operate outside USDC or move some payment activity away from Circle's stablecoin network.

Circle's business is closely tied to its stablecoin USDC, with the company generating $2.64 billion in 2025 revenue from income earned on assets backing the currency. A change in Coinbase's strategy could impact this revenue stream and has led to a decline in Circle's shares.