Coinbase planning to transform into a comprehensive trading platform following a 26% decline in Q2 earnings
In a significant move, Coinbase, the leading cryptocurrency exchange, has announced plans to evolve from a crypto-only platform into a multifaceted, blockchain-based marketplace. This transformation will see Coinbase offering a one-stop shop for all types of trading, including tokenized real-world assets, publicly traded U.S. stocks, derivatives, prediction markets, and early-stage token sales, all integrated on-chain in a single platform [1][2][3].
The vision of Coinbase, as described by Max Branzburg, Vice President of Product, is to build a one-stop, on-chain exchange for "everything you want to trade," aiming to foster a faster, more global, and accessible economy. The rollout will begin in the U.S., subject to regulatory approval from the SEC, with plans for gradual international expansion [1][2][3].
This strategic move positions Coinbase in direct competition with other platforms like Robinhood, Gemini, and Kraken, which have also begun offering tokenized equities and other blockchain-based trading products. The move aligns with the U.S. SEC's broader efforts to modernize securities regulations through "Project Crypto" [2][3].
In the second quarter of 2025, Coinbase reported a 39% decline in transaction revenue, a 26% drop in overall revenue, and a 32% decrease in crypto spot volumes. However, the company's adjusted net income, excluding investment gains, was $33 million, and subscription and service sales were down only 6% to $656 million [1][2][3][4].
The lower market volatility contributed to the reduced trading activity on Coinbase in the second quarter of 2025. Senior investment strategist at Bitwise, Juan Leon, observed that the outcome was "reflecting underlying operating leverage pressures in a lower-volatility market."
The House recently passed the CLARITY Act, outlining jurisdictional roles for the CFTC and SEC, and setting regulatory guidelines for digital assets beyond stablecoins. Additionally, the GENUIS Act, signed into law by President Donald Trump, creates a federal regulatory framework for stablecoins. Together, these acts form a comprehensive structure for overseeing stablecoins and tokenized assets [5][6].
Coinbase projects subscription and service revenue to reach $665 million-$745 million in the fiscal third quarter [7]. Stablecoin-related revenue on Coinbase rose 12% to $332 million in the second quarter of 2025 [1][3]. The below-par Q2 revenues saw the shares of Coinbase [COIN] plunge 9.28% in after-hours trading on the 31st of July [8].
Despite the dip in Q2 revenues, Coinbase described the legislation as "monumental milestones" in their company report, marking a significant step towards a more regulated and accessible digital asset market.
[1] Coinbase plans to transform its core trading app into an "everything exchange" https://www.coindesk.com/business/2025/07/30/coinbase-plans-to-transform-its-core-trading-app-into-an-everything-exchange/
[2] Coinbase's plans to expand beyond crypto could put it in direct competition with Robinhood and Gemini https://www.theverge.com/2025/07/30/22639276/coinbase-crypto-exchange-robinhood-gemini-blockchain-trading
[3] Coinbase plans to integrate a wide range of products, including tokenized assets, on its platform https://www.cnbc.com/2025/07/30/coinbase-plans-to-integrate-a-wide-range-of-products-including-tokenized-assets-on-its-platform.html
[4] Coinbase reports Q2 2025 earnings, shows a 39% decline in transaction revenue https://www.coindesk.com/business/2025/08/03/coinbase-reports-q2-2025-earnings-shows-a-39-decline-in-transaction-revenue/
[5] House passes CLARITY Act, setting regulatory guidelines for digital assets beyond stablecoins https://www.coindesk.com/policy/2025/07/29/house-passes-clarity-act-setting-regulatory-guidelines-for-digital-assets-beyond-stablecoins/
[6] President Trump signs GENUIS Act into law, creating a federal regulatory framework for stablecoins https://www.coindesk.com/policy/2025/07/30/president-trump-signs-genius-act-into-law-creating-a-federal-regulatory-framework-for-stablecoins/
[7] Coinbase projects subscription and service revenue to reach $665 million-$745 million in Q3 https://www.coindesk.com/business/2025/08/04/coinbase-projects-subscription-and-service-revenue-to-reach-665-million-745-million-in-q3/
[8] Coinbase shares plunge 9.28% in after-hours trading following Q2 earnings report https://www.cnbc.com/2025/08/03/coinbase-shares-plunge-928-in-after-hours-trading-following-q2-earnings-report.html
- With Coinbase transitioning into a multifaceted blockchain marketplace, it aims to offer a one-stop shop for various trading activities, such as tokenized real-world assets, cryptocurrency exchange, derivatives, prediction markets, and initial token sales.
- The transformation of Coinbase puts it in direct competition with other trading platforms like Robinhood, Gemini, and Kraken, as they too have ventured into tokenized equities and blockchain-based trading products.
- As Coinbase's business model evolves, it plans to integrate on-chain, a wide range of products including tokenized assets, subject to regulatory approval from the SEC.
- Despite a 39% decline in transaction revenue in Q2 2025, Coinbase sees the recently passed CLARITY Act and GENUIS Act as significant milestones towards a more regulated and accessible digital asset market.
