(Reuters) -Coinbase Global reported a jump in its third-quarter profit on Thursday, as heightened volatility in digital assets boosted trading volumes at the cryptocurrency exchange, sending its shares up more than 3% after the bell.
Digital assets rallied in July as crypto-friendly policies by U.S. President Donald Trump attracted institutional investor interest, catapulting bitcoin, the world’s largest cryptocurrency, to new peaks.
However, weak economic data in the following month sparked recession fears, triggering a sell-off across the sector as investors moved to liquidate riskier assets. Volatility in the sector often benefits cryptocurrency exchanges, with trading volumes typically rising as investors seek to hedge their portfolios.
Coinbase’s transaction revenue rose to $1.05 billion during the quarter, from $572.5 million a year ago.
The company reported a net income of $432.6 million, or $1.50 per share, for the three months ended September 30, compared with $75.5 million, or 28 cents per share, a year earlier.
Revenue from its subscription and services unit, which includes businesses outside of trading, rose 34.3% to $746.7 million.
A portion of Coinbase’s subscription and services revenue is derived from stablecoin holdings and related platform activities. Stablecoin revenue came in at $354.7 million during the third quarter, up from $246.9 million a year earlier.
“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,” Coinbase said in a letter to shareholders.
Stablecoin has received optimism from traditional circles of finance and has been at the forefront of legislations, with GENIUS Act been passed earlier in the year.
The act aims to create a regulatory framework for stablecoins and promote broader adoption.
Coinbase shares have gained about 32% so far in 2025, while bitcoin prices have risen 14.5% during the period.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
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