Top American crypto exchange Coinbase today beat market estimates in its quarterly results—posting $1.4 billion in revenue and $36 million in net income.
Revenue was down overall—by 11%—from the first quarter of this year as crypto prices have since taken a dip.
But Coinbase said in its results that its business of allowing customers to earn interest on its USD Coin (USDC) stablecoin helped the company net bigger gains, with its balance sheet growing to $7.8 billion—an increase of $733 million from the previous quarter.
The San Francisco-based company said in its letter to shareholders that the results come as it sees “extraordinary strides in achieving regulatory clarity,” which it claimed will be “a major unlock for innovation in the industry.” This optimism comes as the firm has been engaged in a legal battle with the Securities and Exchange Commission (SEC) over its crypto asset policies.
“Advancing crypto legislation is now a mainstream issue,” the company explained, noting that the non-profit group Stand With Crypto—which it launched last year—has enlisted over 1.3 million “crypto advocates.”
“Politicians on both sides of the aisle have taken notice, and there is real energy in both the House and Senate around passing legislation,” Coinbase said. “We will continue driving this forward through the fall elections and beyond.”
Coinbase’s total transaction revenue hit $780.9 million in the second quarter, compared with $327.1 million the quarter before. Transaction revenue was also $781 million, down 27%.
But the company added that the number of transactions on Base, its Ethereum layer-2 scaling network, grew 300% quarter-over-quarter.
“In Q2, we laser focused on reducing the barriers and friction points that come with transacting onchain to execute on our goal of driving crypto utility,” the exchange said. “Our work with Base to improve efficiency and lower costs resulted in 300% [quarter-over-quarter] growth in the number of transactions processed
Coinbase, which went public in 2021, has experienced a growing role in the traditional finance sector this year: the company has partnered with most major asset managers that dropped a Bitcoin ETF, providing key crypto custody services.
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