Key Takeaways
- Starting August 13, Coinbase will apply a 0.1% fee to USDC-to-USD conversions that exceed $5 million within a 30-day rolling period.
- The move comes after two consecutive earnings misses, with stablecoin revenue up 12% YoY to $332 million but overall revenue underperforming.
- Analysts say the fee likely offsets redemption costs; some also note it discourages arbitrage routes from Tether to USDC.
Coinbase will impose a 0.1% fee on USDC-to-USD net conversions beyond $5 million within a 30-day window, effective August 13. Previously, conversions up to $40 million were fee-free. The change follows two quarters of underwhelming revenue performance for the exchange.
“Running an Experiment,” Says Coinbase
Bankless co-founder Ryan Adams voiced concern, calling the strategy “a bank fee in disguise.”
Coinbase’s product lead, Will McComb, responded that the fee model is an experiment aimed at balancing fairness and competitor comparisons. Currently, Coinbase charges 0.05% for $40–$100M, and up to 0.2% over $200M.
Fees Also Curtail USDT-to-USDC Arbitrage
Crypto influencer Cobie suggested that the new fee curbs arbitrage — where users could previously swap USDT to USDC to redeem for USD cheaply.
Coinbase CEO Brian Armstrong acknowledged this point, affirming it as a valid rationale.
Earnings Miss Puts Pressure on Coinbase
Coinbase missed second-quarter revenue expectations, earning only $1.5 billion—below forecasts of $1.56–$1.59 billion. The stock dropped 8% following the report. Q1 had already seen a 10% revenue decline and a 95% net income drop due to unrealized portfolio losses.
Final Thoughts
This fee adjustment highlights Coinbase’s proactive approach to streamlining USDC liquidity and offsetting operational costs amidst financial pressures. While some users may balk, the move seems targeted at heavy users and arbitrageurs, not casual retail.
Frequently Asked Questions
When does the new fee take effect?
August 13, 2025.
Will this affect small conversions?
No — only net conversions over $5M in a 30-day period.
Why now?
To offset costs and curb arbitrage draining USDC supply during a revenue slump.
