TLDR
- Coinbase has partnered with Mercuryo to reduce USDC on-ramp fees for MetaMask users on Base by 50%.
- The lower fees apply to both new and existing MetaMask wallet holders using USDC on the Ethereum Layer 2 network.
- Mercuryo confirmed that the initiative is designed to encourage wider stablecoin adoption among retail users.
- Circle recently announced plans for a new blockchain where USDC will be used as the native gas token.
- The deal follows the passage of the GENIUS Act which provides the first federal framework for stablecoins in the United States.
Coinbase has partnered with payments provider Mercuryo to cut on-ramping costs for USD Coin (USDC) users on Base by half. The reduced fees will apply to MetaMask wallet users, both new and existing, enabling cheaper USDC purchases on the Ethereum Layer 2 network. Mercuryo confirmed the fee cut is around 50% and aims to boost stablecoin adoption.
Coinbase–Mercuryo Partnership Targets Stablecoin Growth
Coinbase announced the collaboration with Mercuryo to make USDC transactions more affordable for MetaMask users on its Base network. The move comes as stablecoins continue gaining traction in global payments and settlements. According to Mercuryo CEO Petr Kozyakov, “MetaMask users are likely to take advantage of the lower fees.”
This cost reduction is part of Coinbase’s broader strategy to expand USDC’s utility and reach across different platforms. The Base network, built as an Ethereum Layer 2, offers lower costs and faster transaction speeds. MetaMask integration ensures accessibility for millions of wallet holders worldwide.
Additionally, Coinbase has increased its focus on partnerships to strengthen the stablecoin ecosystem. The company recently teamed with JPMorgan to allow credit card point conversions into USDC. The Mercuryo deal adds a retail-facing incentive to bring more users into USDC on Base.
Circle’s Role and Regulatory Backdrop
Circle, which issues USDC, recently announced plans for a new Layer 1 blockchain using USDC as the native gas token. This development aligns with Coinbase’s efforts, as both firms co-founded the stablecoin in 2018 through the CENTRE Consortium. USDC is currently the second-largest stablecoin by market value.
The partnership follows the passage of the GENIUS Act, the first U.S. federal framework for stablecoins. This regulatory clarity has encouraged institutions to explore USDC for payment and settlement use cases. Coinbase and Circle aim to leverage the new environment to drive adoption further.
Circle reported a 90% year-over-year increase in USDC circulation to $61.3 billion last quarter. This growth has enhanced the value of Coinbase’s stake in Circle and boosted related revenue streams. MetaMask users may directly benefit from this expanding ecosystem.
Revenue Impact and Market Valuation
JPMorgan estimated the value of Circle-related economics to Coinbase shareholders at $55 billion to $60 billion. Most of this value comes from high-margin revenue tied to USDC balances and distribution deals. Coinbase earned $125 million in Q1 from USDC held on its platform.
Off-platform, Coinbase splits income from Circle’s Reserve Fund, generating $170 million last quarter with minimal overhead. These earnings highlight the exchange’s profitability of USDC-related activities. MetaMask fee reductions may further increase USDC transaction volumes on Base.
Circle-funded incentives also help Coinbase attract new users without significant marketing costs. This aligns with the strategy behind the Mercuryo partnership. By offering lower on-ramp fees, Coinbase positions USDC as a more appealing option for MetaMask users.
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Source: https://blockonomi.com/metamask-wallet-holders-benefit-from-50-cheaper-usdc-via-coinbase-deal/