In a shocking revelation, Ryan Y Yi, a former member of Coinbase Ventures, the funding arm of the U.S.’s largest crypto alternate, Coinbase, has hinted at the potential for the U.S.- primarily based crypto alternate buying Circle, the USDC stablecoin issuer. In an X submit, Yi said that the strategic transfer would permit Coinbase to capitalize on USDC’s rising significance.
In accordance with Yi, Coinbase’s share of USDC circulation has skilled important development. As of Q1 2025, Coinbase’s USDC shares had reached round 23% of the stablecoin’s whole provide, reflecting fast development. Moreover, USDC has change into Coinbase’s second-largest income. Therefore, Yi argued that buying the Circle outfit can be strategic and permit the crypto alternate to seize USDC-related income totally.
Yi clarified Coinbase’s present place per income from its USDC shares, explaining that the alternate solely earns full reserve revenue on on-platform USDC and splits off-platform revenue 50/50 with Circle regardless of holding 4 occasions extra USDC. In the meantime, Coinbase performs a big function within the adoption of USDC.
Income Positive factors Drive Rumors
Contemplating Coinbase’s present standing per USDC shares, the revenue-sharing mannequin limits the crypto alternate’s capability to scale its buyer and developer-facing merchandise. In accordance with Yi, the present state of affairs doesn’t bestow protocol-level management on Coinbase. Due to this fact, he believes buying Circle will eradicate that constraint.
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Moreover, Yi added that by buying Circle, Coinbase would get full income attribution on USDC and governance over the USDC protocol. It is going to additionally permit multichain integrations and strategic flexibility throughout key merchandise like Coinbase Pockets and Base.
Additional, the previous Coinbase Ventures member cited each firms’ understanding of the long-term worth of such a improvement and highlighted the synergetic potential concerned regardless of each events not reaching any particular deal phrases but. In the meantime, Circle has denied studies of ongoing acquisition talks with Coinbase and Ripple, describing them as baseless rumors.
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