Who's Really Profiting from Stablecoins: The Hidden Truth Behind Distribution Channels

The stablecoin market has seen significant growth in recent years, but the real question is not who issues the coins, but rather who controls the distribution channels.

According to a report by Darko of IOSG, the key change in the industry is not in technology, but rather in institutional attitudes.

The passage of the GENIUS Act in 2025 marked a turning point for mainstream financial institutions, which finally understood the value of stablecoins.

Circle and Coinbase are two major players in the market, with Circle being the issuer of USDC and Coinbase serving as its largest distributor.

However, a closer look at their relationship reveals that Coinbase is not just a passive distributor but also has significant control over the distribution channels.

The company's contract with Circle guarantees it a large share of the reserve profits, which is a significant source of revenue for Coinbase.

This arrangement is set to continue until 2029, when the contract will be reviewed and potentially renewed.