Coinbase delivered a stronger-than-expected third quarter, fueled by renewed crypto trading activity and institutional demand.
Shares rose nearly 3% in after-hours trading, extending a 32% gain since the start of 2025.
Revenue, Profits Jump in Q3
The San Francisco-based exchange benefited from bitcoin’s all-time high during the quarter and the Trump administration’s pro-crypto regulatory push, easing compliance hurdles. Coinbase’s strategic focus on stablecoins and institutional services supported stronger market performance.
The company announced on October 30 that it reported $1.87 billion in revenue and $433 million in profit for Q3. Transaction-based revenue jumped 83% from a year ago to $1 billion, while subscriptions and services climbed 34% to $747 million. Institutional activity grew sharply following Coinbase’s $2.9 billion acquisition of Deribit, with trading volumes up 22% quarter-over-quarter.
“Our institutional trading revenues grew over 120% in the quarter,” said Chief Financial Officer Alesia Haas. “Our new white-glove service for advanced traders is seeing strong traction and retention,” she added.
Stablecoin-related income also soared, reaching $354 million. Coinbase said the average USDC across its products hit a record $15 billion, reflecting broader adoption of digital dollars among financial institutions.
The company continued to expand its Bitcoin exposure, highlighting its strategic emphasis on cryptocurrency accumulation. CEO Brian Armstrong emphasized a sustained buying approach throughout the period.
Bank Deals Boost Institutional Expansion
Coinbase’s aggressive expansion into traditional finance could reshape its long-term business model. The company recently partnered with major US banks, including JPMorgan, Citigroup, and PNC, to provide crypto-as-a-service and payments integration.
It also applied for a national trust bank charter to deepen institutional custody and treasury operations. Analysts say these moves could cement Coinbase’s role as a core infrastructure provider in the crypto-financial ecosystem.
Meanwhile, Coinbase continues to explore a potential token launch for its Ethereum layer-2 network, Base. JPMorgan analysts estimate the token could add up to $12 billion in value to Coinbase’s market capitalization.
COIN stock performance YTD / Source: Yahoo Finance
With stablecoin regulation gaining momentum and crypto markets rebounding, 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 digital asset integration into global finance.
