Coinbase Defies Expectations as Stablecoin and Trading Revenue Surge Despite Falling Rates

Coinbase continues to outperform expectations, not only weathering falling interest rates but thriving because of them. According to data, the exchange reported a net income of $433 million for Q3 2025, or $1.50 per share, a dramatic jump from $75.5 million ($0.28 per share) during the same quarter in 2024.

The company attributed this surge to heightened volatility in the digital asset market, which significantly boosted trading activity. Transaction revenue for the quarter climbed to $1.05 billion, up from $573 million a year earlier, reaffirming Coinbase’s position as the leading beneficiary of renewed market momentum.

Stablecoin Revenue Defies Rate Cuts

Adding to its strong performance, Coinbase’s stablecoin business has continued to expand even as interest rates decline, challenging the narrative that crypto yield products depend on high-rate environments.

In data shared by Ryan Rasmussen, Head of Research at Bitwise Asset Management, Coinbase’s stablecoin revenue has grown steadily from Q3 2023 through Q2 2025, despite the risk-free rate dropping from 5.5% to 3.9% over the same period.

“Stablecoin businesses will collapse when rates get cut,” Rasmussen noted. “Except, no. Rates have been falling. Coinbase’s stablecoin revenue has been… growing.”

The data, compiled by Bitwise and Artemis, underscores Coinbase’s success in diversifying revenue streams beyond simple interest income, tapping into on-chain activity, transaction fees, and Layer-2 network adoption through Base, its Ethereum scaling solution.

A Broader Shift Toward Utility-Based Crypto Revenue

The resilience of Coinbase’s stablecoin business reflects a larger trend in the digital asset sector: crypto revenues are increasingly tied to user activity and adoption rather than macro rate cycles.

As stablecoins like USDC become embedded in payments, remittances, and DeFi ecosystems, Coinbase’s ability to earn from transaction flow and custody operations has outpaced yield compression. This dynamic has helped shield the company from the profit downturns that traditional financial institutions often face when rates fall.

Coinbase Strengthens Its Lead in the Crypto Economy

Together, the jump in both trading and stablecoin revenue paints a picture of a maturing crypto economy, one no longer driven solely by speculation or interest rate arbitrage, but by real user engagement and institutional participation.

Coinbase’s $433 million profit marks one of its strongest quarters since going public, signaling that the exchange’s hybrid model, blending trading, custody, and on-chain services, is paying off.

As global rate cuts continue, Coinbase’s performance suggests that the next phase of crypto profitability will come not from higher yields, but from deeper integration of digital assets into financial infrastructure.