The Wallet That Supercharges USDC Activity

Stablecoins need good infrastructure. Coinbase Smart Wallet proved it, powering hundreds of millions in onchain activity. Now comes the Base App.

Author

Stablecoin Analyst
July 18, 2025

Welcome to this edition of The Stablecoin Analyst. Today, we explore Coinbase’s Smart Wallet, the predecessor version of the new Base App announced this week, and highlight the different ways users engaged with USDC through the wallet.

Coinbase Smart Wallet Benefits

What is Coinbase Smart Wallet?

Think of it like Apple Pay—but for apps on blockchains.

Coinbase Smart Wallet is a digital wallet that lets users interact with apps onchain, without dealing with the usual crypto headaches. No seed phrases. No complicated gas fees. It uses passkeys (like Face ID or device unlock) to approve transactions, making crypto feel as easy as tapping a card.

Why it matters

This year alone, Coinbase Smart Wallets have processed over $776 million in USDC. People are using it to lend, pay, swap, and more—directly from their phones, with no extra setup.

Here are the four biggest ways people are using Coinbase Smart Wallet to transact with USDC today:

Lending

P.S. I had written about this in my earlier issue (Coinbase has launched the future of Collateralized Lending)

Coinbase now offers a loan product that breaks from traditional banking.

It’s called a Crypto-Backed Loan. On the surface, it feels simple: open the Coinbase app, tap “Borrow,” and instantly receive USDC—a regulated, dollar-pegged digital asset. No forms, no credit checks, no waiting.

But under the hood, it works very differently.

Instead of relying on a bank, the entire process happens onchain. Users lock crypto like BTC or ETH as collateral in a public, automated system. A Coinbase Smart Wallet is created for them on Base, Coinbase’s blockchain, and the loan is issued transparently using public crypto infrastructure.

So far this year, over 38,000 Coinbase Smart Wallets have borrowed more than $478 million in USDC—backed by over $1 billion in supplied crypto assets.

Magic Spend

Imagine paying for something online with your debit card—funds come straight from your bank account, no extra steps.

That’s exactly how MagicSpend works on Coinbase Smart Wallets.

Instead of transferring USDC to a separate wallet, MagicSpend lets users pay directly from their own Coinbase balance on supported apps. No manual transfers, no network fees, no friction.

It’s like their USDC is already at checkout—ready to spend. By removing the usual wallet hurdles, MagicSpend makes USDC payments feel as seamless as swiping a card.

This year alone, Coinbase Smart Wallets have processed nearly $106 million in USDC using MagicSpend—a sign that users aren’t just holding USDC, they’re actually spending them. It’s a glimpse into a future where USDC isn’t just stored, but used like everyday money.

DeFi

DeFi has always been powerful, but often too complex for everyday users. Coinbase Smart Wallets are helping change that.

These wallets make it easy to interact with DeFi protocols. Users can swap into USDC using other crypto assets, or sell USDC to buy something else, all within a few taps.

So far this year, Coinbase Smart Wallets have facilitated nearly $4 million in USDC swaps. It is a sign that crypto tools are becoming more accessible and easier to use for everyone.

P2P Transfer

Coinbase Smart Wallets are not just for using blockchain apps. They are also becoming a popular way for users to send USDC directly to friends or other wallets for simple peer-to-peer transfers.

So far this year, more than $17 million in USDC has been transferred this way through Coinbase Smart Wallets by at least 3,500 users. It is a smooth, app-like experience, making crypto feel as easy as sending money on Venmo.

Final Thoughts

USDC has proven itself as one of the most reliable and widely used assets in crypto. But even the strongest currency needs the right infrastructure to unlock its full potential.

That is what Coinbase Smart Wallet delivered. It allowed users to move beyond just holding USDC by making it easy to spend, lend, swap, and send—all from a mobile experience that felt familiar and simple.

This wallet has now evolved into the Base App, which brings an upgraded interface, expanded features, and a more seamless connection to the onchain world. It represents the next step in making stablecoins truly usable for everyday activity.

The data is clear. USDC is no longer just sitting in wallets. It is being put to work across real use cases like lending and P2P transfers, powered by tools like Coinbase Smart Wallet.

If this was just the beginning, I am looking forward to seeing how far the Base App can take things from here.

The best is yet to be,

The Stablecoin Analyst

P.S. I write about how stablecoins are powering real-world apps with data, not hype. Subscribe to stay ahead.

The information provided on this issue is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Nothing on this issue should be interpreted as an endorsement, recommendation, or advice to engage in any specific transaction, strategy, or investment. The data is presented "as is" without any warranties of accuracy or completeness. Users should consult with professional advisors for specific guidance before making any financial, legal, or tax-related decisions. Use of this dashboard is entirely at your own risk.