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Coinbase vs. Circle: Which Stablecoin Powerhouse Is a Safer Bet?
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Key Takeaways
Coinbase leverages trading, staking, and stablecoin services to diversify revenues and expand its user base.
CRCL relies mainly on USDC reserve interest income, making it vulnerable to rate-driven revenue shifts.
COIN stock rose 5.8% in a month, while CRCL dropped 9.6% after its June 2025 IPO debut.
Retail access to cryptocurrencies is progressing steadily as platforms improve onboarding, enhance user experiences, and align more closely with regulatory expectations. Fintechs and exchanges are increasingly integrating crypto wallets and trading capabilities into their apps, making it easier for everyday users to manage digital assets. In this evolving landscape, the question arises: which company is better positioned for long-term growth — Coinbase Global Inc. (COIN - Free Report) or Circle Internet Group (CRCL - Free Report) ?
Stablecoins are emerging as a crucial link between traditional finance and the crypto world, playing a key role in the development of next-generation digital financial infrastructure. Major banks are even beginning to explore their own stablecoin initiatives. As tokenization, stablecoins and decentralized finance (DeFi) continue to evolve, retail users will gain access to a growing suite of user-friendly and functional crypto services that extend far beyond basic asset trading.
Yet, cyber threats remain a challenge . But as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for COIN
Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. The platform is likely to benefit from President Trump’s supportive stance on crypto and his push for regulatory clarity. With 83% of its revenues generated domestically, Coinbase is tightly aligned with a U.S. market that is increasingly viewed as a global leader in crypto innovation.
The company is actively advancing real-world crypto adoption through infrastructure initiatives like Base — its cost-effective Layer 2 scaling solution — and a heightened focus on stablecoins. These efforts support Coinbase’s broader strategy to become the go-to platform for businesses adopting digital assets. The recent launch of the Base App, which replaces Coinbase Wallet, expands Coinbase’s role beyond trading by reaching a wider consumer base. The app aims to drive deeper engagement in the on-chain ecosystem while unlocking new monetization opportunities.
Coinbase is also pushing stablecoins into the mainstream with Coinbase Payments, an alternative to traditional card processing fees that enables stablecoin-based online transactions. The company has further incentivized adoption by waiving fees on PayPal’s stablecoin transactions. These moves bolster Coinbase’s growing subscription and services segment, with stablecoin income emerging as a key revenue driver.
From a financial standpoint, Coinbase ended 2024 with $9.3 billion in U.S. dollar resources — including cash, cash equivalents, and USDC — reflecting a $3.8 billion increase year over year. The company also strengthened its balance sheet by lowering its debt load, resulting in healthier leverage and interest coverage ratios.
Nonetheless, elevated transaction and operating expenses continue to weigh on margins. Coinbase remains heavily exposed to volatility in major cryptocurrencies such as Bitcoin and Ethereum. A sharp decline in asset prices could hurt earnings, reduce crypto holdings’ value, and strain liquidity and future cash flows.
Factors to Consider for CRCL
Circle Internet Group will play a pivotal role in the global evolution of digital finance, offering investors direct exposure to the fast-growing world of stablecoins and blockchain-enabled payments. Circle completed its IPO last month and started trading on June 5, 2025 on NYSE.
With more than $25 billion USDC, the U.S. dollar-backed stablecoins, in circulation and widespread adoption across major blockchains, wallets and exchanges, Circle benefits from strong network effects and growing institutional interest in tokenized dollars.
Circle facilitates secure, low-cost, and real-time value transfers across both decentralized and traditional financial systems and has thus carved out significant competitive advantages. Its commitment to regulatory clarity—through partnerships with banks and compliance with U.S. and global standards—sets it apart from less regulated crypto-native competitors. Collaborations with leading institutions such as BlackRock, Visa and Fiserv underscore Circle’s vision of USDC becoming a core component of digital payments, cross-border remittances and embedded finance applications.
Circle’s business model is primarily driven by interest income on USDC reserves, which are predominantly invested in U.S. Treasuries. This reliable income stream is bolstered by an expanding portfolio of products, including Circle Mint, programmable wallets and blockchain-based treasury management tools. With demand for digital dollars accelerating, Circle’s financial model has become increasingly robust and scalable. Moreover, the company’s initiatives in real-world asset tokenization and programmable finance are opening up new growth opportunities, particularly in B2B payments and institutional-grade digital asset solutions.
CRCL stock has experienced significant volatility since its IPO.
Estimates for COIN and CRCL
The Zacks Consensus Estimate for COIN’s 2026 revenues and EPS implies an 8% and 11.4% year-over-year increase, respectively. EPS estimates have, however, moved south over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRCL’s 2026 revenues implies a 20.2% increase but the same for EPS suggests a year-over-year decrease of 3.9%. EPS estimates have moved south over the past 30 days .
Image Source: Zacks Investment Research
Price Performance of COIN and CRCL?
COIN shares have gained 5% in a month, while CRCL shares have lost 9.9% in the same time.
Image Source: Zacks Investment Research
Conclusion
Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services, and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.
On the other hand, Circle’s efforts to expand USDC’s utility in tokenized payments and real-world asset applications are encouraging, but the company operates with a narrower focus and more limited scale. Its revenues are predominantly derived from interest earned on USDC reserves, leaving it highly exposed to fluctuations in macroeconomic factors like interest rates.
Though both COIN and CRCL carry a Zacks Rank #3 (Hold), at present, COIN seems a safer option.
Image: Shutterstock
Coinbase vs. Circle: Which Stablecoin Powerhouse Is a Safer Bet?
Key Takeaways
Retail access to cryptocurrencies is progressing steadily as platforms improve onboarding, enhance user experiences, and align more closely with regulatory expectations. Fintechs and exchanges are increasingly integrating crypto wallets and trading capabilities into their apps, making it easier for everyday users to manage digital assets. In this evolving landscape, the question arises: which company is better positioned for long-term growth — Coinbase Global Inc. (COIN - Free Report) or Circle Internet Group (CRCL - Free Report) ?
Stablecoins are emerging as a crucial link between traditional finance and the crypto world, playing a key role in the development of next-generation digital financial infrastructure. Major banks are even beginning to explore their own stablecoin initiatives. As tokenization, stablecoins and decentralized finance (DeFi) continue to evolve, retail users will gain access to a growing suite of user-friendly and functional crypto services that extend far beyond basic asset trading.
Yet, cyber threats remain a challenge
.
But as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
Factors to Consider for COIN
Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. The platform is likely to benefit from President Trump’s supportive stance on crypto and his push for regulatory clarity. With 83% of its revenues generated domestically, Coinbase is tightly aligned with a U.S. market that is increasingly viewed as a global leader in crypto innovation.
The company is actively advancing real-world crypto adoption through infrastructure initiatives like Base — its cost-effective Layer 2 scaling solution — and a heightened focus on stablecoins. These efforts support Coinbase’s broader strategy to become the go-to platform for businesses adopting digital assets. The recent launch of the Base App, which replaces Coinbase Wallet, expands Coinbase’s role beyond trading by reaching a wider consumer base. The app aims to drive deeper engagement in the on-chain ecosystem while unlocking new monetization opportunities.
Coinbase is also pushing stablecoins into the mainstream with Coinbase Payments, an alternative to traditional card processing fees that enables stablecoin-based online transactions. The company has further incentivized adoption by waiving fees on PayPal’s stablecoin transactions. These moves bolster Coinbase’s growing subscription and services segment, with stablecoin income emerging as a key revenue driver.
From a financial standpoint, Coinbase ended 2024 with $9.3 billion in U.S. dollar resources — including cash, cash equivalents, and USDC — reflecting a $3.8 billion increase year over year. The company also strengthened its balance sheet by lowering its debt load, resulting in healthier leverage and interest coverage ratios.
Nonetheless, elevated transaction and operating expenses continue to weigh on margins. Coinbase remains heavily exposed to volatility in major cryptocurrencies such as Bitcoin and Ethereum. A sharp decline in asset prices could hurt earnings, reduce crypto holdings’ value, and strain liquidity and future cash flows.
Factors to Consider for CRCL
Circle Internet Group will play a pivotal role in the global evolution of digital finance, offering investors direct exposure to the fast-growing world of stablecoins and blockchain-enabled payments. Circle completed its IPO last month and started trading on June 5, 2025 on NYSE.
With more than $25 billion USDC, the U.S. dollar-backed stablecoins, in circulation and widespread adoption across major blockchains, wallets and exchanges, Circle benefits from strong network effects and growing institutional interest in tokenized dollars.
Circle facilitates secure, low-cost, and real-time value transfers across both decentralized and traditional financial systems and has thus carved out significant competitive advantages. Its commitment to regulatory clarity—through partnerships with banks and compliance with U.S. and global standards—sets it apart from less regulated crypto-native competitors. Collaborations with leading institutions such as BlackRock, Visa and Fiserv underscore Circle’s vision of USDC becoming a core component of digital payments, cross-border remittances and embedded finance applications.
Circle’s business model is primarily driven by interest income on USDC reserves, which are predominantly invested in U.S. Treasuries. This reliable income stream is bolstered by an expanding portfolio of products, including Circle Mint, programmable wallets and blockchain-based treasury management tools. With demand for digital dollars accelerating, Circle’s financial model has become increasingly robust and scalable. Moreover, the company’s initiatives in real-world asset tokenization and programmable finance are opening up new growth opportunities, particularly in B2B payments and institutional-grade digital asset solutions.
CRCL stock has experienced significant volatility since its IPO.
Estimates for COIN and CRCL
The Zacks Consensus Estimate for COIN’s 2026 revenues and EPS implies an 8% and 11.4% year-over-year increase, respectively. EPS estimates have, however, moved south over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRCL’s 2026 revenues implies a 20.2% increase but the same for EPS suggests a year-over-year decrease of 3.9%. EPS estimates have moved south over the past 30 days .
Image Source: Zacks Investment Research
Price Performance of COIN and CRCL?
COIN shares have gained 5% in a month, while CRCL shares have lost 9.9% in the same time.
Image Source: Zacks Investment Research
Conclusion
Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services, and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.
On the other hand, Circle’s efforts to expand USDC’s utility in tokenized payments and real-world asset applications are encouraging, but the company operates with a narrower focus and more limited scale. Its revenues are predominantly derived from interest earned on USDC reserves, leaving it highly exposed to fluctuations in macroeconomic factors like interest rates.
Though both COIN and CRCL carry a Zacks Rank #3 (Hold), at present, COIN seems a safer option.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.