Coinbase will introduce tiered transaction fees ranging from 0.05% to 0.2% for USDC-to-USD conversions exceeding $5 million starting August 13.
The new structure applies specifically to large-scale conversions: 0.05% for amounts above $5 million, 0.1% above $25 million, and 0.2% above $100 million. This strategic adjustment follows consecutive quarters where Coinbase missed revenue targets, including Q2’s reported $1.5 billion versus projected $1.56-$1.59 billion.
Despite broader revenue challenges, Coinbase experienced 12% year-on-year growth in stablecoin-related revenue, reaching $332 million. Industry analysts suggest the fee implementation aims to bolster profitability but may discourage high-volume conversions and alter USDC market dynamics—particularly for traders converting assets like USDT to USDC before off-ramping.
The exchange anticipates this fee structure will enhance financial sustainability, though it could reshape user conversion behaviors and impact USDC’s liquidity advantages on Coinbase.