Coinbase Global (COIN) posted higher-than-expected profit and revenue for the third quarter, as crypto markets boosted revenue and trading activity during the period.
In its third quarter, net revenue at the crypto exchange tallied $1.79 billion, up from $1.13 billion in the same quarter last year. Its trading volume during the quarter totaled $295 billion, up from $185 billion last year.
Profits totaled $433 million, or $1.50 per share, up from $75.5 million in the same quarter last year. The stock is up 34% since the start of 2025, outperforming the largest cryptocurrency, bitcoin (BTC-USD). During the third quarter, bitcoin reached an all-time high.
Coinbase stock rose as much as 2.6% in after-hours trade on Thursday.
Fees from transaction revenue on the Coinbase platform rose 83% from a year ago to $1 billion. And the company’s subscription and services division, which houses everything from its revenue related to stablecoins and staking to fees from interest and financing, climbed 34% to $747 million.
Coinbase CFO Alesia Haas told Yahoo Finance Executive Editor Brian Sozzi that growth on the trading front was fueled by advanced traders.
“We rolled out this new white-glove service offering that’s seen a lot of traction that we’re able to retain and grow these advanced traders on our platform,” she said.
The Trump administration’s embrace of the crypto world this year has already opened a number of legal and regulatory doors for Coinbase and the broader industry, including the first federal framework regulating stablecoins in July. Stablecoins are crypto assets pegged to government-issued currencies or commodities like gold. And that momentum in Washington, D.C., isn’t expected to slow.
Read more: How stablecoins work
“We are accelerating payments through stablecoin adoption, which we anticipate will continue given policy tailwinds, and ongoing adoption from financial institutions and corporates for payment and treasury needs,” the company said in its letter to shareholders on Thursday.
“With regulatory clarity accelerating, crypto rails are set to power more of global GDP, and we believe Coinbase is positioned to lead.”
The company has announced several acquisitions this year, including paying $2.9 billion for major crypto derivatives exchange Deribit in May and, more recently, purchasing blockchain capital raising platform Echo earlier this month for $375 million.
“Our institutional trading revenues, they grew over 120% in the quarter,” Haas said of the impact of the Deribit deal.
Coinbase’s focus on stablecoins has also accelerated the growth of the second-largest stablecoin, USDC (USDC-USD), which is issued by Circle (CRCL). Coinbase earns a cut from distributing that coin; it posted $354 million in revenue from stablecoin revenue. The company said the average USDC held across its products reached an all-time high of over $15 billion in the quarter.
Coinbase is also aggressively notching partnerships with traditional finance institutions through its institutional business with the aim to grow out a crypto prime brokerage offering custody, trading, execution, financing, and a bundle of plug-in crypto services for other institutions to offer their customers.
The company has also landed agreements with major US banks, including a credit card partnership with JPMorgan Chase (JPM), a crypto-as-a-service deal with PNC Financial Services Group (PNC), and a crypto payments solution collaboration with Citigroup (C).
At the beginning of this month, Coinbase applied for the Office of the Comptroller’s national trust bank charter to enhance those efforts.
David Hollerith covers the financial sector, ranging from the country’s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance