Coinbase Wants to Turn Every FinTech into a Crypto Company | PYMNTS.com

There are several publicly listed cryptocurrency companies in the United States.

These firms tend to act as a good barometer of the state of the digital goods industry, at least domestically.

If the cryptocurrency exchange CoinbaseIn the third quarter of 2024 wages results Wednesday (Oct. 30) was any indication, the use of crypto for speculation is decreasing, while the use of crypto money in payments is increasing.

“Our focus is on building the infrastructure to create an environment where the payments will be 10 times better than the current options,” Coinbase Chief Financial Officer. Alesia Haas he told investors during the Q&A section of Wednesday’s call, adding that “the company’s goal is that basically every fund, every FinTech company, will end up being a crypto company.”

“The technology is there, but we need to create a user experience,” he said. “We need to continue to create on-ramps and off-ramps to stablecoins so that people can use them for global payments. We can make the experience easier within the products of ours so we can build better P2P payment opportunities for customers.”

However, Coinbase missed Wall Street analysts’ estimates for revenue and earnings, sending the share down into the single digits. The company reported net income of $75.5 million, or 28 cents per share, compared with a loss of $2.3 million, or 1 percent, in the same quarter last year.

Also read: Coinbase Expands Access to B2B Crypto Payments

Crypto Trading Volume Takes a Hit Amid Lower Asset Exercise

Transaction fees, a key revenue driver for Coinbase, fell as crypto trading volumes fell on US exchanges. The volatility of the Crypto market – which determines the number of transactions – has decreased by about 5% quarter over quarter, the company has highlighted. share certificate.

Corporate trading was also affected, with Coinbase reporting Q3 trading revenue of $55 million, down 13% quarter over quarter. The region’s Q3 operating profit was $151 billion, down 20% quarter over quarter,

Crypto markets are changing rapidly, Coinbase said in its letter, emphasizing the difficulty of navigating such an unstable environment while trying to expand its sources of income beyond just trading activity.

Stablecoin revenue increased to $246.9 million, marking a 2.6% quarter-over-quarter increase and a 43% increase from the same period last year. USDCmainly, it played a role. Coinbase partnership with A circlewhich issues USDC, offers a 50/50 share of the profit from the sources that support USDC, the second largest dollar-backed stablecoin in the market.

With the USDC market growing more than 45% so far, this currency has become important for Coinbase.

See also: Visa Direct Teams With Coinbase for Real-Time Crypto Deposits

Coinbase’s investment in the recommendations platform and the tight integration of USDC across its product portfolio strengthened the balance of the platform and the USDC market, as global stablecoin volumes increased to more than $22 trillion. Coinbase and Circle’s USDC and EURC stablecoins were the first stablecoins depending on European Unionnew Crypto Assets Markets (MiCA) regulatory framework in Q3, positioning them for further adoption within the European crypto ecosystem.

“The incentives of our platform, as well as the deep integration of USDC into our products, have have been supporters to the market gap and the growth of balance on the platform,” the company said in a letter to shareholders.

Everything happens as different players in crypto the world is looking for “greater use – and recognition – across the financial services ecosystem,” as PYMNTS wrote earlier this month.

In its letter to shareholders, Coinbase emphasized its commitment to drive revenue growth in several strategic directions: expanding derivative products; to increase its international reach; improving care services; and deepening the relationship of the USDC to the crypto economy.

Coinbase partnership with Visaannounced this week, allows debit card holders to transfer funds instantly to their Coinbase accounts, demonstrating the company’s drive to improve cryptocurrency and make it accessible to a wider user base .

As Coinbase navigates an environment of regulatory pressures, declining cryptocurrency and reduced trading activity, its pivot towards stablecoin-related services and infrastructure development highlights the path which may exist. With stablecoins seen as a promising area for wider adoption – especially given their compliance with the EU’s MiCA rules – Coinbase is positioning itself as a leader in crypto-enabled financial solutions that time more business.