Coinbase’s ‘Everything Exchange’ Vision Gains Momentum as Crypto Goes Mainstream

The crypto industry’s highest highs are typically as high as its lowest lows are low. And right now, the sector is experiencing a high.

That’s good news for the U.S.-listed crypto exchange Coinbase, which on Thursday (Oct. 30) reported $1.9 billion in total revenue for the third quarter 2025, up 25% from the prior period.

“Q3 was a strong quarter for Coinbase. We drove solid financial results, maintained focus on shipping innovative products, and continued building the foundation of the Everything Exchange,” Coinbase Co-Founder and CEO Brian Armstrong said on Thursday to investors.

The “Everything Exchange” concept, which executives stressed was central to Coinbase’s current narrative, combines three layers of activity: trading, financial services and applications. The strategy’s logic is straightforward. First, attract users through regulated spot and derivatives markets; second, retain them with financial utilities such as custody, rewards and lending; and third, provide infrastructure and developer tools for on-chain applications that can expand overall network demand.

Per Coinbase’s financials, consumer trading activity was up 37% from the prior quarter to $59 billion; while institutional transactions represented a 122% increase quarter-over-quarter revenue for the exchange.

Read more: Coinbase Brings Crypto Into the Boardroom 

Derivatives are becoming one of the cornerstones of Coinbase’s institutional strategy, as reflected by its acquisition of Deribit, the world’s largest crypto options exchange by open interest, which closed in August. The $3 billion deal brought Coinbase an immediate foothold in global derivatives trading, a segment that represents roughly 80% of total crypto volume.

The other major growth engine was stablecoins. Coinbase’s partnership with Circle continued to yield results as USDC’s market capitalization hit $74 billion, its highest level to date. Average balances of USDC held within Coinbase products reached $15 billion, contributing $355 million in revenue, up 7% sequentially.

Management framed stablecoins not just as an investment vehicle but as the backbone of a new payments infrastructure. The company launched Payment APIs and B2B interfaces that allow enterprises to embed USDC settlement into their operations, automate treasury flows, and send payouts around the clock on its Base network.

Coinbase also introduced Embedded Wallets, giving developers a way to integrate wallet functionality directly into apps without forcing users to manage separate interfaces.

The company anticipates further growth in USDC adoption, particularly following passage of the GENIUS Act, which clarifies regulatory treatment of stablecoins and opens new institutional payment channels. Internationally, Coinbase continues to add distribution routes in Brazil and India, targeting markets with growing digital-payments infrastructure.

Together, these initiatives mark Coinbase’s most tangible move into payments — a segment long seen as crypto’s next frontier but historically hampered by volatility and regulation. The firm’s bet is that regulated stablecoins like USDC will bridge that gap.

See also: FinTech Partnerships Look to Crack Stablecoin On- and Off-Ramp Challenges

Subscription and services revenue also benefited from custody and financing businesses. Assets Under Custody reached $300 billion, an all-time high, supported by inflows from bitcoin and ether ETFs and corporate treasuries.

Coinbase remains the primary custodian for more than 80% of U.S. crypto ETF assets, positioning it as an essential infrastructure provider to traditional finance.

Coinbase’s competitive position benefits from the global regulatory trend toward formal recognition of crypto intermediaries. In the U.S., the GENIUS Act’s stablecoin provisions and regulators’ acceptance of Coinbase’s perpetual futures mark significant milestones. Abroad, Coinbase’s push into Brazil and India leverages rising demand for cross-border settlement using stablecoins.

At the same time, competition is intensifying. Traditional financial institutions are entering custody and trading, while decentralized exchanges continue to gain liquidity. Coinbase’s scale and brand trust give it an advantage, but maintaining compliance across jurisdictions will require ongoing investment and political engagement.

Read more: Crypto Custody Becomes Land Grab for FinTechs 

Perhaps the clearest takeaway from Coinbase’s third quarter is stability. After years of erratic earnings tied to crypto price cycles, the company is delivering consistent profitability with a clearer revenue base. Its liquidity position and diversified income streams suggest it is less exposed to short-term volatility, even if market sentiment still influences transaction activity.

The long-term question is whether Coinbase can transform that stability into sustainable growth. Doing so will depend on whether stablecoins and on-chain applications can deliver the real-world adoption that has so far eluded the industry.

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