Cryptocurrency Q&A
How does Coinbase earn USDC?
How does Coinbase earn USDC?
GinsengBoostPowerBoostVitality
Tue Jul 16 2024
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7 answers
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Inquiring minds may wonder, how does the renowned cryptocurrency platform Coinbase generate revenue from the USDC stablecoin? Given its status as a trusted exchange, one might assume Coinbase profits directly from each USDC transaction. However, the truth lies deeper in the ecosystem. While Coinbase certainly facilitates USDC trading, its primary revenue stream likely stems from other avenues. Could it be through transaction fees? Perhaps, but with the stability of USDC, transaction volumes may not be as lucrative as one might expect. Alternatively, Coinbase could be earning from the issuance of USDC itself, leveraging its partnership with Circle to provide liquidity and earn interest on reserves. Whatever the case, understanding how Coinbase profits from USDC remains an intriguing question for those keen on the intricacies of the cryptocurrency industry.
7 answers
henry_grayson_lawyer
Thu Jul 18 2024
By earning a pro rata portion, Coinbase is incentivized to continue supporting and promoting the use of USDC.
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SeoulSoul
Thu Jul 18 2024
Following the arrangement, Coinbase will now equally share in the profits earned from the distribution and usage of USDC.
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Elena
Thu Jul 18 2024
However, this sharing is subject to certain expenses being covered first, ensuring that operational costs are met before profits are distributed.
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IncheonBeautyBloom
Thu Jul 18 2024
As part of the newly established agreement, Coinbase stands to receive a proportional share of the income generated from the USDC reserves.
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JejuSunshineSoulMate
Thu Jul 18 2024
This distribution will be based on the amount of USDC held on each party's platform, ensuring fairness and transparency.
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