Cryptocurrency exchange company Coinbase Global (NASDAQ: COIN) works hard to simplify things in the complex crypto market, hoping ease of use will bring more than 1 billion new people into the ecosystem. But the company generated 28% of its revenue in the second quarter of 2023 not from working hard, but passively through interest income.

Coinbase generated $201 million in total interest income in Q2. Of this, 75% came in because of its interest in stablecoin USD Coin (CRYPTO: USDC). And the company just made a move to protect that source of revenue.

USD Coin is the second-largest stablecoin in the world. Each coin is backed by dollar reserves, making each one redeemable for $1. This is what stabilizes the price, unlike other cryptocurrencies that are prone to extreme volatility.

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Source Fool.com