FintellHQ
Connecting

Methodology · Sector guide

How to invest in stablecoins through public stocks

The stablecoin market is now over $310B and growing — arguably the most consequential piece of crypto infrastructure. But the two biggest issuers (Circle/USDC and Tether/USDT) aren't publicly traded (Circle plans an IPO; Tether is Bahamian and private). To get stablecoin exposure through a public stock, you have to look at the ecosystem: exchanges that earn on stablecoin float, payment companies issuing their own stablecoins, and card networks piloting stablecoin settlement.

The best single stablecoin bet in public markets: Coinbase (COIN). Their partnership with Circle earns them approximately half of the interest income on all USDC in existence (currently ~$60B). At Fed funds around 5%, that's ~$1.5B/year in revenue potential — meaningful for Coinbase's income statement and structurally sticky as long as USDC stays a top stablecoin.

Coinbase (COIN) — USDC economics

Coinbase and Circle split revenue on USDC reserves ~50/50. As Fed rates stay elevated and USDC market cap grows, this becomes an increasingly important line item for Coinbase. Structural moat: hard for competitors to replicate.

PayPal (PYPL) — PYUSD issuer

First major payment company to launch its own stablecoin (PYUSD, August 2023). Market share is small vs. USDT/USDC, but PayPal has 400M+ users — huge distribution potential. Watch adoption metrics.

Block (XYZ) — Cash App payments

Cash App's crypto integration handles significant stablecoin flow among US retail users. Not directly issuing a stablecoin, but positioned as stablecoin-native payments grow.

Visa & Mastercard — settlement rails

Both are piloting stablecoin settlement (USDC + others). Strategic positioning for when payment infrastructure migrates on-chain. Currently a small percentage of their overall business, but scales meaningfully over the next decade.

Public stocks with meaningful stablecoin exposure

COINCoinbase

Earns ~50% of interest on all USDC in circulation via its Circle partnership. USDC economics is arguably Coinbase's most important structural revenue driver.

PYPLPayPal

Issues PYUSD stablecoin. First major payment company to launch its own stablecoin. Small share today but strategic positioning for stablecoin-native payments.

XYZBlock Inc (Cash App)

Cash App handles significant stablecoin flow. Strong Bitcoin integration. Positioned as stablecoin infrastructure grows across peer-to-peer payments.

VVisa

Piloting stablecoin settlement (USDC over Solana + Ethereum). Enterprise stablecoin adoption at scale — but a tiny fraction of Visa's overall revenue today.

MAMastercard

Similar to Visa — stablecoin settlement partnerships. Strategic hedge against payment rails migrating on-chain.

Frequently asked questions

Can I buy Circle (USDC issuer) stock?▼

Not directly today — Circle is still private. Circle has filed for an IPO multiple times and is expected to eventually go public. When that happens, it would be one of the most pure-play stablecoin stocks available. Until then, Coinbase (COIN) is the closest public proxy given its USDC revenue share.

Can I buy Tether stock?▼

No — Tether Limited is a private Bahamian company. There's no public stock. This is a significant gap in the public market's ability to invest in the stablecoin theme, since Tether (USDT) is the largest stablecoin by market share (~59%).

Is PayPal's PYUSD a serious stablecoin?▼

Currently small — PYUSD's market cap is much smaller than USDT or USDC. But PayPal's distribution advantage (400M+ users) means PYUSD could grow rapidly if PayPal integrates it into more products. Adoption rate is the metric to watch.

How much does Coinbase actually earn from USDC?▼

Coinbase and Circle split roughly 50/50 the interest income on USDC reserves. With USDC at ~$60B market cap and interest rates around 5%, that's ~$1.5B/year total — with Coinbase's share around $750M/year. This is a meaningful line item for Coinbase's total revenue.

What happens if interest rates fall?▼

Stablecoin issuer revenue drops proportionally. USDC reserves earn interest at prevailing Treasury rates; lower rates = lower revenue. This is one of the risks of stablecoin issuer stocks — they benefit from higher Fed rates and get squeezed when rates fall.

Which is the best stablecoin exposure play?▼

For direct stablecoin economics: Coinbase (COIN). For a hedge on the payment-rails migration story: Visa (V) and Mastercard (MA). For pure US retail crypto/stablecoin flow: Block (XYZ). PayPal (PYPL) is a strategic call on whether PYUSD gains real market share. Not investment advice — depends on your thesis.

This page is educational content, not financial advice. Every data figure traces to a primary source (SEC EDGAR filings, company 10-Q / 10-K / 8-K disclosures, or licensed data feeds). See our About page for editorial standards + methodology.

→ See stablecoin theme·→ COIN stock page·→ PYPL stock page·→ All learning guides