Stripe, Visa, and Mastercard’s New Stablecoin Could Kill Circle’s $2.64B Revenue

Key Takeaways

• Stripe, Visa, and Mastercard are launching a joint stablecoin to rival Circle and Tether, which control 80% of the $325B market
• Circle stock fell 11% in one session as Coinbase evaluates joining — its $2.64B USDC revenue deal with Circle renews in August
• Coinbase CEO Armstrong said at Q1 earnings, contracts with Circle were set — that was before Stripe, Visa, and Mastercard made their move

The stablecoin market seems to be getting a new prominent entrant. According to a recent report, Stripe, Visa, and Mastercard are working on a joint platform focused on stablecoin payments, with Coinbase also exploring possible participation. The development comes as stablecoins move further into mainstream payments and settlement infrastructure. For Circle, the issuer behind USDC, the report arrives just months before a key agreement with Coinbase is set for renewal.

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Circle Fell 11% as Coinbase Weighs Joining the Platform Before Its August Renewal

The proposed Stripe’s stablecoin platform would bring together three of the largest names in payments. This comes at a time when stablecoin adoption is moving across both crypto and traditional finance. According to recent data, the stablecoin sector is now worth roughly $319 billion. Circle’s USDC and Tether’s USDT account for the majority of the market.

The report also said Coinbase is evaluating whether to join the initiative. This particular detail drew attention because Coinbase and Circle remain closely tied through a revenue-sharing agreement signed in 2023. The agreement is scheduled for renewal in August.

Under this arrangement, Coinbase keeps all interest income generated from USDC held on its exchange. In addition to the shares revenue from off-platform USDC circulation with Circle. Reserve income generated from USDC contributed $2.64 billion to Circle’s revenue in 2025.

The market’s response was immediate. Circle stock fell nearly 11% in a single trading session as investors weighed the possibility of Coinbase aligning itself with a competing network just weeks before its August agreement renewal. For a company that generated $2.64 billion in reserve income from USDC last year, the potential of a shift in distribution is hard to ignore.

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Payment Giants Did Not Land Here Overnight

The companies involved have spent the past two years expanding their stablecoin capabilities. Stripe acquired Bridge for $1.1 billion in 2024. Meanwhile, Mastercard acquired BVNK to strengthen its stablecoin infrastructure. Visa has also expanded its settlement program, which recently reached an annualized volume of $7 billion across more than 130 programs in 50 countries.

For now, details about the proposed Visa-Mastercard stablecoin network remain limited. Whether Coinbase ultimately joins is also unclear.

Despite this, the report shows how quickly the stablecoin market is evolving. What was once largely driven by crypto-native firms is increasingly attracting major payment companies, banks, and fintech providers. As that competition grows, upcoming negotiations between Circle and Coinbase may receive even closer attention from investors.

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