Coinbase Reports Strong Q3 Performance with Increased Revenue and Profits
Coinbase Global (COIN) revealed that its profit and revenue for the third quarter surpassed analysts’ expectations, bolstered by an uptick in crypto market activity. The crypto exchange reported net revenue of $1.79 billion for the quarter, a significant rise from $1.13 billion during the same period last year. Additionally, trading volume reached $295 billion, compared to $185 billion a year prior. The company’s profits soared to $433 million, translating to $1.50 per share, up from $75.5 million in the previous year’s quarter. Since the beginning of 2025, Coinbase’s stock has surged by 34%, outpacing the performance of bitcoin (BTC-USD), which hit an all-time high during the same quarter. On Friday, Coinbase shares experienced an early trading increase of up to 3.5%.
Transaction Fees and Subscription Revenue See Significant Growth
The fees generated from transactions on the Coinbase platform saw an impressive 83% increase from the previous year, totaling $1 billion. Furthermore, the company’s subscription and services segment, which encompasses revenue from stablecoins, staking, and financing fees, surged by 34%, reaching a record high of $747 million. Alesia Haas, the CFO of Coinbase, indicated in an interview that the company’s growth in trading was largely driven by advanced traders. She mentioned the introduction of a premium service that has attracted and retained these experienced traders on the platform.
Regulatory Developments Favorable for Coinbase and the Crypto Industry
This year, the Trump administration’s positive stance towards the cryptocurrency sector has paved the way for various legal and regulatory advancements for Coinbase and the wider industry. Notably, in July, a federal framework was established to regulate stablecoins—digital assets linked to government-backed currencies or valuable commodities such as gold. The company anticipates that this momentum in Washington, D.C., will persist. In a letter to shareholders, Coinbase expressed optimism about the role of stablecoin adoption in enhancing payment processes, citing favorable policy support and increasing interest from financial institutions and corporations for treasury and payment solutions.
Strategic Acquisitions and Institutional Trading Growth
Coinbase has made notable acquisitions this year, including the $2.9 billion purchase of the prominent crypto derivatives exchange Deribit in May and the recent acquisition of blockchain capital raising platform Echo for $375 million. Haas highlighted that institutional trading revenues surged by over 120% in the quarter, attributing some of this growth to the Deribit acquisition. The company’s emphasis on stablecoins has also contributed to the expansion of USDC (USDC-USD), the second-largest stablecoin issued by Circle (CRCL), with Coinbase earning $354 million in revenue from its distribution. The average USDC held across Coinbase’s offerings reached a record high of over $15 billion in the quarter.
Building Partnerships with Traditional Financial Institutions
In addition to its growth in trading and stablecoin activities, Coinbase is actively forming partnerships with traditional financial institutions through its institutional business. The company aims to develop a comprehensive crypto prime brokerage service that encompasses custody, trading, execution, financing, and a suite of crypto-related services for institutions to offer to their clients. Coinbase has successfully established agreements with major U.S. banks, including a credit card collaboration with JPMorgan Chase (JPM), a crypto-as-a-service arrangement with PNC Financial Services Group (PNC), and a crypto payments partnership with Citigroup (C). Earlier this month, Coinbase applied for a national trust bank charter from the Office of the Comptroller, furthering its efforts in this direction.
