Coinbase and Circle shares have come under pressure after a report from CoinDesk said Coinbase is weighing a role in a new stablecoin platform backed by Stripe, Visa and Mastercard.
Summary
- Shares of Circle and Coinbase fell after a report said Coinbase could join a Stripe-backed stablecoin platform.
- Coinbase’s potential move drew attention to its Circle revenue agreement, which is up for renewal in August.
- Bitcoin weakness and bearish retail sentiment added pressure as investors eyed competition from stablecoins and exposure to USDC revenues.
CoinDesk reported that Coinbase Global is evaluating whether to participate in the planned platform, a move that has drawn attention due to the exchange’s existing revenue-sharing agreement with Internet Circle Group. The report put new focus on Coinbase’s stablecoin strategy as investors looked at Circle’s USDC business and Coinbase’s negotiating position ahead of contract renewal later this year.
Coinbase Overhaul Hits Circle Stock
Circle shares fell as much as 4% shortly after the market opened on Tuesday, while Coinbase fell 1.4% during the same morning session. The drop came as cryptocurrency-linked stocks traded under pressure and Bitcoin struggled to stay above $67,000.
According to market data cited in the report, bitcoin price It was trading near $66,800 at the time of writing after falling 2.8% in 24 hours. The price drop followed an intraday move towards $65,000 and a $1.8 billion selloff in crypto markets.
On Stocktwits, retail sentiment for both Circle and Coinbase entered bearish territory over the past day. The platform also showed that message volume around Circle increased by 40% in 24 hours, while both Circle and Coinbase recorded more than 150% growth in message volume over the last month.
Stablecoin competition draws attention
Circle’s business remains closely tied to USDC and its filings show how important reserve revenue has become for the company. Circle generated $2.64 billion in revenue in 2025 from income earned from assets backing USDC, according to figures cited in the report.
A platform backed by Stripe, Visa and Mastercard could add new competition in stablecoin payments. CoinDesk said such infrastructure may operate outside of USDC or move some payment activities away from Circle’s stablecoin network.
Shares of Visa and Mastercard also weakened in Tuesday morning trading, with both stocks falling more than 2%. Stocktwits data showed a split in retail sentiment, as Visa trended bearish while Mastercard improved from bullish to extremely bullish.
Revenue deal faces August test
Investors’ main concern centers on Coinbase’s current deal with Circle. Under the 2023 agreement, Coinbase keeps all interest income from USDC on its exchange and shares income equally with Circle on USDC circulating elsewhere.
CEO of Coinbase Brian Armstrong addressed the deal during the company’s first-quarter earnings call last month. He said contracts with Circle were already in place, adding that Coinbase hoped to continue the relationship under the same terms.
Still, CoinDesk’s report raised questions about whether Coinbase could gain more bargaining power by joining another stablecoin platform before the August renewal period.
