Why Circle Should Outperform Coinbase

Both Circle Internet Group (NYSE: CRCL) and Coinbase (NASDAQ: COIN) have been down recently, particularly in light of the market's bearishness since last fall. It's a buying opportunity for both, but does that mean both are equally good buys? Let's find out. Circle and Coinbase are closely related, both operating in the crypto space. Coinbase is a major crypto exchange. Most revenue comes from transaction-based fees from crypto trading, with recurring subscriptions accounting for a smaller but growing share.Circle mints stablecoins through a process of tokenization. Circle takes a real asset, like the US dollar, and create a token of it on the blockchain. Its primary product is USDC and earns revenue from short-term interest on the real USD it keeps in reserve. USDC is the second-largest USD stablecoin, after USDT. With these things in common, Coinbase was one of Circle's first major distributors, and it shares in the interest earned on USD.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool