Coinbase delivered a stronger-than-expected third quarter, supported by new crypto trading activity and institutional demand.
The stock rose nearly 3% in after-hours trading, extending its gain since the beginning of 2025 by 32%.
Sales and profits increased significantly in the third quarter
The San Francisco-based exchange benefited from Bitcoin’s all-time high during the quarter and the Trump administration’s pro-crypto regulatory push, which eased compliance hurdles. Coinbase’s strategic focus on stablecoins and institutional services supported improved market performance.
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On October 30, the company announced third-quarter sales of $1.87 billion and profit of $433 million. Transaction-based revenue increased 83% year-over-year to $1.0 billion, while subscriptions and services increased 34% to $747 million. After Coinbase’s $2.9 billion acquisition of Deribit, institutional activity increased sharply, with trading volumes increasing 22% quarter over quarter.
“Institutional trading revenue increased more than 120% in the quarter,” said Chief Financial Officer Alecia Haas. “Our new service for advanced traders is showing strong traction and retention,” she added.
Stablecoin-related revenue also skyrocketed, reaching $354 million. Coinbase said the average USDC across its products reached a record high of $15 billion, reflecting the growing adoption of digital dollars among financial institutions.
The company continued to expand its Bitcoin exposure and emphasized its strategic focus on accumulating cryptocurrencies. CEO Brian Armstrong emphasized a continued purchasing approach throughout the period.
Banking drives institutional expansion
Coinbase’s aggressive expansion into traditional finance could reshape its long-term business model. The company recently partnered with major US banks such as JPMorgan, Citigroup, and PNC to offer encryption and payments integration as a service.
It has also applied for national trust bank approval with the aim of deepening institutional custody and financial operations. Analysts say the move could solidify Coinbase’s role as a core infrastructure provider for the crypto financial ecosystem.
Meanwhile, Coinbase continues to explore the possibility of a token launch for Ethereum’s Layer 2 network, Base. JPMorgan analysts estimate that the token could add up to $12 billion to Coinbase’s market cap.
As stablecoin regulation gains momentum and the crypto market recovers, Coinbase is positioning itself at the intersection of fintech and traditional banking. The company’s diversified business lines suggest it may be poised to lead the next phase of integrating digital assets into global finance.
