Coinbase's Third Quarter Report: Exceeded Expectations

Coinbase Global (COIN) announced its third-quarter results, which surpassed expectations in both profit and revenue amid the increase in the cryptocurrency market.

The third-quarter net revenue for the cryptocurrency exchange was recorded at 1.79 billion dollars, marking a 58% increase compared to the same quarter last year. The total trading volume amounted to 295 billion dollars, representing a significant increase compared to 185 billion dollars in the previous year's quarter.

The company's profit jumped significantly, reaching 437 million dollars, or 1.50 dollars per share, compared to the same period in 2022. The stock has gained 34% since the beginning of 2025, outperforming the largest cryptocurrency Bitcoin (BTC-USD), which reached a historic high during the third quarter.

Following the announcement on Thursday, Coinbase shares rose by 2.5%.

Fees generated from transaction revenue on the Coinbase platform reached 1 billion dollars, an 83% increase compared to the previous year. The company's subscriptions and services segment, covering various areas from interest and financing fees related to stablecoins and staking, recorded 747 million dollars, a 34% increase.

The Trump administration's approach to the crypto world this year has opened many legal and regulatory doors for Coinbase and the broader sector. In July, the first federal framework for stablecoins was established. Stablecoins are crypto assets pegged to government-issued currencies or commodities like gold, and this momentum in Washington D.C. is expected to continue.

In a letter to its investors, the company stated, "We are accelerating stablecoin adoption and expect it to continue with policy support. Furthermore, we believe that the increasing adoption of crypto by financial institutions and corporations for payment and treasury needs will support more global Gross Domestic Product."

The company, which has made several acquisitions this year, paid 2.9 billion dollars for the major crypto derivatives exchange Deribit in May, and acquired the blockchain capital-raising platform Echo for 375 million dollars earlier this month.

By focusing on stablecoins, the company has also accelerated the growth of the second-largest stablecoin, USDC. Coinbase earned 354 million dollars from the distribution of this coin and stated that it holds an average of over 15 billion dollars in USDC among its products.

Coinbase has also taken an aggressive approach in establishing partnerships with traditional financial institutions, aiming to provide various integrated crypto services such as deposit, trading, execution, financing, and others for institutional clients through its own crypto prime brokerage service.

The company signed agreements with major U.S. banks, including a credit card partnership with JPMorgan Chase, a crypto service agreement with PNC Financial Services Group, and a crypto payment solution collaboration with Citigroup.

Earlier this month, Coinbase filed for a national bank charter with the Office of the Comptroller of the Currency to strengthen these efforts.