Trading volume hits record high! Coinbase revenue surges 55%, CEO says December will showcase “stock tokenization and prediction market details,” continuing the move toward a “platform for trading everything.”

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Thanks to record-high token prices driving a surge in trading volume, Coinbase, the largest cryptocurrency exchange in the United States, reported better-than-expected third-quarter revenue. Its CEO also hinted at upcoming plans in stock tokenization and prediction markets, boosting the company’s stock price.

According to financial results released on Thursday, Coinbase’s third-quarter revenue grew 55% year-over-year to $1.9 billion, surpassing analysts’ expectations of $1.8 billion. Net profit soared nearly fivefold from $75.5 million a year earlier to $433 million, or $1.50 per share.

After the earnings report, Coinbase shares rose as much as 4% in after-hours trading, bringing the year-to-date rally to 32%. The cryptocurrency market has continued to rebound this year, partly due to the Trump administration’s positive stance toward the industry, including the passing of the first U.S. stablecoin regulatory bill in July.

Trading Volume Soars, Stablecoins and Derivatives Become New Revenue Engines

In a letter to shareholders on Thursday, Coinbase said its third-quarter trading volume reached $295 billion. This strong momentum appears to have continued into the fourth quarter. Data shows that in the first month of the current quarter, despite investors experiencing dramatic volatility with record liquidations just days after cryptocurrencies like Bitcoin hit all-time highs, trading revenue still reached $385 million.

In addition to its trading business, stablecoins and derivatives have also provided momentum for revenue growth.

As a shareholder and a major distribution channel of USDC stablecoin issuer Circle Internet Group Inc., Coinbase earned $354.7 million in revenue from this segment in the third quarter.

In addition, the company said that newly acquired options platform Deribit contributed $52 million in revenue this quarter, thanks to “continued growth in options trading, with nominal trading volume hitting a record high.” During the period, the total notional derivatives trading volume between Deribit and Coinbase exceeded $840 billion.

Towards an “Everything Exchange,” Acquisition Plans Remain on the Agenda

On the earnings call, CEO Brian Armstrong said, the company plans to share more details about its stock tokenization and prediction market initiatives at a product showcase on December 17.

Armstrong said, “We have been working hard, preparing for the next step,” reiterating the company’s vision to become an “everything app” providing all the financial functions consumers need.

Coinbase executives also indicated the company remains interested in acquisitions, especially in the trading and payments sectors.

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