Coinbase Stablecoin Revenue Set for Sevenfold Growth in 2026

Coinbase Institutional’s 70-page report forecasts a major boost in stablecoin revenue, projecting potential growth of up to sevenfold in 2026. The firm attributes this to clearer global regulatory frameworks, which are expected to encourage broader adoption and institutional participation according to the report.

The U.S. is emerging as a pivotal market, with legislative efforts such as the GENIUS Act and broader crypto market structure bills gaining momentum. These developments are likely to influence everything from risk management standards to how institutional investors approach digital assets according to the report.

Coinbase Institutional has also noted that the stablecoin market is expected to grow to about $1.2 trillion by 2028. This growth will be fueled by increased use in areas like payments, payroll, cross-border remittances, and settlement systems according to the report.

Why Did This Happen?

The report outlines a shift from retail-driven market cycles to a more institutional and regulatory-focused environment. Coinbase describes this as a phase of maturation, where clearer rules help integrate digital assets into traditional financial systems according to the report.

Bitcoin’s volatility profile has also changed. By the end of 2025, its 90-day historical volatility had dropped to 35–40%, from levels above 60% in mid-2024. This moderation has helped align Bitcoin more closely with high-growth technology stocks, supporting its acceptance as a mainstream asset according to the report.

What Are Analysts Watching Next?

The CLARITY Act remains a focal point for crypto stakeholders. The odds of its approval rose to 90% on Polymarket in recent days, following earlier odds of 60%. However, stablecoin reward rules continue to be a major point of contention between banks and crypto firms according to StockTwits.

Banks are pushing to close perceived loopholes in the current framework, seeking to limit or eliminate stablecoin rewards for consumers. Crypto companies, including Coinbase, have pushed back, arguing that such rewards benefit individuals, not corporations according to StockTwits.

A third round of negotiations between the crypto industry and banks is expected soon. Resolution is needed before the end of February, when Washington’s legislative window closes according to StockTwits.

How Did Markets React?

The broader crypto market has remained rangebound as the CLARITY Act remains stalled in the Senate. Bitcoin fell to about $66,900 in the last 24 hours, while altcoins like Solana and Ethereum also experienced price declines according to StockTwits.

Coinbase’s stock, however, showed resilience, rising over 1% in overnight trading after a prior decline. Retail sentiment on crypto platforms remains highly bullish, with users expecting a breakthrough in the coming weeks according to StockTwits.

Coinbase currently holds over 80% of U.S. Bitcoin and Ethereum ETF assets, according to CEO Brian Armstrong. This positions the company as a key custodian and intermediary in the growing institutional crypto market according to MEXC.

With regulatory clarity and market structure bills gaining traction, Coinbase and other major players are likely to see increased adoption of stablecoins across institutional and retail use cases. The next few weeks will be critical in determining the speed and shape of this transition according to the report.