Coinbase Weighs Stripe-Backed Stablecoin Platform With Visa, Mastercard, Stirring USDC Concerns

Coinbase may be preparing a bigger push into payments-focused stablecoins, and the prospect is unsettling markets and adding fresh pressure on Circle, the issuer of USDC. CoinDesk reported that Coinbase Global is assessing whether to participate in a new stablecoin infrastructure effort being built with Stripe, Visa and Mastercard. The proposed platform could function outside the USDC ecosystem or divert payment activity away from Circle's network. The report weighed on related stocks early Tuesday. Circle shares fell as much as 4% shortly after the open, while Coinbase slipped about 1.4% in the same session. Visa and Mastercard were also down more than 2% that morning. Broader crypto weakness amplified the move. Bitcoin traded around $66,800 after roughly a 2.8% decline over 24 hours, following an intraday dip toward $65,000. Crypto markets saw about $1.8 billion in liquidations. Retail sentiment tracked by Stocktwits turned bearish on both Circle and Coinbase over the past day. Discussion volume spiked: mentions of Circle rose about 40% in 24 hours, and message volume for both Circle and Coinbase climbed more than 150% over the past month. Sentiment toward the card networks diverged, with Visa trending bearish while Mastercard shifted to extremely bullish from bullish. For Circle, the stakes are high given its dependence on USDC. Company filings cited in the report indicate reserve income is a key driver: Circle generated about $2.64 billion in 2025 revenue from income on assets backing USDC. Coinbase and Circle also operate under a 2023 revenue-sharing agreement. Coinbase keeps all interest income on USDC held on its exchange and splits revenue equally with Circle on USDC circulating off-exchange. On the Q1 earnings call, Coinbase CEO Brian Armstrong said the contracts 'were already in place' and the company expected to continue the relationship under the same terms. Even so, the CoinDesk report suggested Coinbase could improve its negotiating position if it joins an alternative stablecoin platform ahead of a contract renewal expected in August. Key items to monitor include whether Coinbase formally joins or backs the Stripe/Visa/Mastercard payments-focused stablecoin infrastructure, any changes to USDC revenue-sharing when the agreement is renewed later this year, and whether payment flows shift from USDC to a new network supported by major payments players. Bottom line: A payments-industry-backed stablecoin initiative, with Coinbase considering participation, could emerge as a credible challenger to Circle's USDC franchise. Near-term market jitters are already visible, but the longer-term impact hinges on formal commitments and the outcome of the upcoming contract renewal.