Key Insights
- Certain crypto equities stand to gain as U.S. bond yields rise.
- Coinbase and Circle will profit due to the yield generated by stablecoins.
- Robinhood holds billions of dollars in interest-bearing assets.
A number of crypto-related equities possess direct or indirect exposure to elevated U.S. interest rates. Treasury yields moved upward again on Sept. 23, while Bitcoin hovered near $84,000. Data from CoinMarketCap indicated that the global cryptocurrency market capitalization dropped to approximately $2.87 trillion.
Circle, Coinbase, and Robinhood all operate segments that generate revenue tied to interest rates. Nevertheless, climbing Treasury yields do not impact all three firms uniformly.
The distinction between short-term and long-term yields is also significant.
Reserves backing Circle’s stablecoin primarily consist of overnight repurchase agreements and short-term government securities, whereas Coinbase and Robinhood maintain more diverse streams of interest-driven income.
Why U.S. Treasury Yields Are Rising
U.S. bond yields are climbing against the backdrop of an expanding national debt. Figures indicate that public spending in the U.S. has climbed past $40.2 trillion, following the milestone of $40 trillion reached just weeks prior. This increase, combined with the absence of debt-reduction strategies from the Trump administration, has sparked worries regarding the creditworthiness of the United States.
Additionally, bond yields are being pushed higher by climbing crude oil prices, which have driven diesel costs to record highs. Both mortgage rates and gasoline prices have also spiked during the year, fueling inflation concerns. Consequently, the Federal Reserve is anticipated to implement interest rate hikes this year.
Circle Stock Stands to Benefit Because of its Business Model
Circle Internet Group is positioned to gain significantly from rising bond yields thanks to its operational model, which centers on issuing stablecoins and placing its reserves into government bonds.
Statistics show that the market capitalization for the company’s USDC has expanded to $75.4 billion—a trajectory expected to persist following its recent collaboration with Binance. Circle allocates its reserves into short-term government bonds that mature in roughly three months. These bonds are currently delivering a yield of 4.14%, marking the highest point since September 2025 and a substantial jump from the year-to-date low of 3.58%.
By applying a yield of 4.14% to a projected average USDC market capitalization of $75.4 billion, annual revenue would surpass $3.1 billion. Actual earnings will be considerably lower, however, due to distribution agreements, particularly the arrangement with Coinbase where Coinbase keeps all of its interest earnings.
Additionally, Circle is experiencing strong momentum with the recent rollout of its Arc Layer 1 network, which has driven increases in both its total value locked (TVL) and stablecoin assets.
Robinhood Stock to Benefit From its Cash Holdings and Diversification
HOOD shares could similarly profit from escalating interest rates for two primary reasons. First, the firm maintains substantial cash deposits, allowing it to pull in considerable interest income.
During its latest earnings report, the company announced a 9% quarterly increase in net interest revenue, reaching $389 million and pointing to growing interest-generating assets. For the initial six months of the year, net interest revenue surpassed $748 million.
Furthermore, Robinhood operates a highly diversified platform encompassing its rapidly expanding Robinhood Chain, a predictions marketplace, options trading, tokenized assets, and retirement offerings.
Coinbase Stock to Benefit From its Stablecoin Business
Coinbase represents another leading crypto equity poised to gain from the ongoing surge in bond yields. Its primary advantage stems from its high-margin stablecoin operations, fueled by its alliance with Circle.
Recent financial results demonstrated a 44% increase in average USDC held across Coinbase products—including Base—reaching $20 billion. As a consequence, its stablecoin division generated $292 million in revenue throughout the second quarter.
The upward trend in interest rates suggests this revenue stream will continue growing in the months ahead. Concurrently, Coinbase has broadened its business model and now functions as a prominent supplier of prediction tools and tokenized stocks.
This article is for informational purposes only and does not constitute investment or financial advice. Stocks and cryptocurrencies involve market risk.