TLDR
- Coinbase unveils Business platform for SMBs with 4.1% USDC yield.
- New product blends payments, accounting, and instant crypto settlements.
- Platform rivals fintechs like Brex, BitPay, and Mercury head-on.
- USDC yields boost Circle partnership and Coinbase’s revenue share.
- Coinbase eyes AI-powered crypto payments and stablecoin dominance.
Coinbase Global (COIN) closed at $330.25 on October 16, down 1.80%, before slipping further to $329.89 in after-hours trading.
The company announced a new product, Coinbase Business, designed for small and medium-sized businesses. The platform aims to offer stablecoin yield, payments, and seamless crypto integrations.
Coinbase Business, currently in alpha, combines crypto settlement features with accounting integrations and stablecoin yield opportunities. It supports popular software such as QuickBooks, Xero, CoinTracker, and Crypto Tax Calculator. Coinbase expects to roll out full availability in 2025.
Businesses using the new service can send, receive, and hold USDC, while earning up to 4.1% APY on idle balances. Settlements are instant, withdrawals are available through Wire or ACH, and the onboarding process is fully self-service. Most accounts will be approved within two days, according to the company.
New platform challenges fintechs and crypto payment firms
Coinbase positioned its new service as a “crypto operating account” offering yield-bearing stablecoin services and integrated payments tools. This strategic move puts it in competition with Mercury, Brex, BitPay, and OpenNode. However, Coinbase’s existing infrastructure and scale provide a unique advantage.
The firm plans to streamline operations like vendor payments and payroll using digital assets. Users will also be able to cash out crypto directly to linked business bank accounts, removing friction from traditional systems. Coinbase aims to simplify financial operations and eliminate chargebacks through crypto rails.
The platform supports multi-user access, ensuring shared control over financial activity and secure internal management. Through APIs, businesses can sync transactions in real time with accounting software. The service focuses on both convenience and compliance, enabling firms to adopt crypto without regulatory setbacks.
USDC integration strengthens revenue potential and Circle partnership
Coinbase holds a major revenue-sharing agreement with Circle, the issuer of USDC, one of the largest stablecoins with a $76 billion market cap. Under the deal, Coinbase receives 50% of the revenue from interest earned on USDC reserves. This incentivizes Coinbase to increase USDC volume on its own platform.
Unlike Circle, Coinbase can offer yield incentives such as the 4.1% APY for businesses and 4.7% APY in Coinbase Wallet. These features are designed to accelerate USDC adoption among retail and business users. It also helps Coinbase expand its presence in the growing stablecoin payments market.
Coinbase is also exploring AI-driven commerce and programmable payments through its open-source x402 protocol. The company confirmed it held acquisition talks with stablecoin payment provider BVNK, valued at around $1.5 billion. While details remain limited, Coinbase appears set on expanding its control in the crypto payments space.
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