Coinbase will introduce a 0.1% fee for converting the stablecoin USD Coin (USDC) to US dollars for net conversions above $5 million in a 30-day rolling period, starting 13 August. The net amount will be calculated by deducting USDC purchases from USDC sales, according to a notice shared by the exchange.
The move comes as Coinbase faces pressure on earnings. Last week, the company reported second-quarter results that missed revenue and profit expectations, sending its share price lower. Stablecoin-related revenue rose 12% year-on-year to $332 million, but this was not enough to offset broader financial challenges. It was the second quarter in a row the exchange failed to meet analysts’ forecasts.
Community Concerns Over New Charges
The update drew mixed reactions from the crypto community. Ryan Sean Adams, co-founder of Bankless, compared the fee to traditional bank charges. “What if this dropped to $10k. Feels like bank fees again,” he wrote on X.
Will McComb, Coinbase’s senior product manager for stablecoins, said the exchange was “running an experiment” to see how fees would affect USDC off-ramping, noting that some rivals charge higher fees to move stablecoins back into fiat currency.
“Your point about this being a core feature is heard and we’re carefully monitoring all feedback,” McComb added. “We’re committed to making sure Coinbase is the best place to use stablecoins.”
Existing Fee Structure and Market Context
Currently, Coinbase charges no fee for USDC-to-USD conversions up to $40 million in a 30-day period. Fees then scale from 0.05% for $40 million–$100 million to a maximum of 0.2% for amounts above $200 million.
Some observers believe the change is aimed at covering operational costs. Crypto influencer Jordan Fish, known as “Cobie,” suggested the move could also be designed to discourage arbitrage. He noted that some users were converting Tether (USDT) to USDC to avoid Tether’s own exit fees before off-ramping into dollars. Coinbase CEO Brian Armstrong appeared to confirm this reasoning with a brief “Yep” in reply.
Tether currently charges 0.1% or $1,000, whichever is higher, for converting USDT, with a minimum redemption of $100,000.
Despite the changes, both stablecoins have grown this year. According to DefiLlama, USDT’s market cap has risen 20% since January, while USDC’s is up 47%. Bloomberg ETF analyst James Seyffart said Coinbase was “likely incurring a cost” in handling USDC conversions and is now passing this cost on to users.
