Financial institutions and other companies are leaning into crypto offerings to the benefit of Coinbase, which announced several partnerships during the quarter and into July. 

“I think eventually, most of the Fortune 500 will integrate crypto in some way, just like they all use the internet,” Chief Executive Brian Armstrong said during the company’s July 31 earnings call. “We have about 240 institutions or companies that are utilizing these Coinbase rails in various ways today.”

FIs and fintechs that recently announced their use of Coinbase rails include: 

• $3.6 trillion JPMorgan Chase; 

• $549 billion PNC; 

• E-commerce platform Shopify; 

• Trading platform EToro; 

• Fintech Revolut; and 

• Trading platform Webull. 

Armstrong added: “There’s a lot more in the pipeline.” 

“Crypto is eating financial services, and our goal is to be the No. 1 financial services platform in the world across custody, trading, payments, staking, borrowing and lending and more,” he said. 

Also during Q2, New York-based Coinbase acquired derivatives exchange platform Deribit and launched a credit card with American Express. 

Coinbase confirmed it is actively considering applying for a bank charter, “but has not made any formal decisions yet.” Coinbase told Bank Automation News in a statement. 

GENIUS Act drives crypto 

As Coinbase adds to its offerings, passage of the GENIUS Act last month is expected to boost the crypto market further. 

“Passage of the GENIUS Act will fuel further innovation and adoption of stablecoins, and we are uniquely positioned because we have both the broadest distribution base for USDC  [U.S. Dollar Digital Currency] and the best rewards program for customers,” Armstrong said. 

Coinbase is building a platform he calls an “everything exchange: every asset you want to trade in a one-stop shop, all on crypto rails,” Armstrong said, adding that the GENIUS Act has given the industry clarity on how to do so. 

By the numbers 

In Q2, Coinbase reported: 

• Net revenue of $1.4 billion, up 7% YoY 

• Total transaction volume of $764 million, down 2% YoY; and 

• Subscription revenue of $655 million, up 9% YoY. 

Market reaction: Despite posting growing revenue, the company’s stock was getting battered and was $321 at 12pm.m. ET today, down 15%. 

The company has a market cap of $81 billion.