Coinbase Global (COIN) reported total revenue of $1.5 billion for Q2 2025, slightly below analyst expectations of about $1.59 billion, a 26% drop (QoQ). Gains in the cryptocurrency exchange’s subscription revenue failed to offset weaker trading volumes during the quarter, CNBC reported. Transaction revenue came in at $764 million, falling approximately 39% from Q1 and missing forecasts of $814 million.
Surge in interest in stablecoins
However, subscription and services revenue rose 9.5%(YoY) to about $656 million, supported by strong stablecoin income this quarter. Income from stablecoin grew by 12% (YoY) at $332.5 million. Adjusted net income declined sharply to $33 million at roughly 12 cents per share, compared with $294 million or $1.10 per share in the same period last year. Meanwhile, GAAP net profit surged to $1.4 billion or $5.14 per share, driven by unrealized gains on strategic investments and holdings in Circle and crypto assets.
Total cryptocurrency trading volume reached $237 billion, up 5% year-on-year but still down significantly from the prior quarter, restrained by a 16% drop in crypto asset volatility. Operating expenses climbed 15% to $1.5 billion, largely due to $307 million in costs linked to a data breach incident disclosed in May. Coinbase’s stock tanked as much as 11% in after-hours trade on the back of the earnings miss.
Turning to tokenized stocks
Coinbase is actively seeking SEC approval to offer tokenized U.S. equities domestically. Chief Legal Officer Paul Grewal confirmed the company’s intention to secure either a “no-action letter” or exemptive relief from the SEC to make the product legal in the U.S.
The company says it views tokenization as a natural progression under increasing regulatory clarity. Coinbase highlighted policy moves such as the GENIUS Act and Clarity Act as a catalyst to expanding regulated real‑world asset offerings. Speaking during the Q2 earnings call, CEO Brian Armstrong stated, “We’re currently working towards launching tokenized equities to meet the moment in this new regulatory environment.”
The move places Coinbase in direct competition with rivals like Robinhood, Gemini, and Kraken, which have already launched tokenized stock offerings, though primarily outside the U.S. If approved by the SEC, Coinbase will officially be pivoting from a primarily crypto‑asset trading platform toward a broad-based on‑chain asset exchange, offering tokenized stocks, derivatives, and prediction markets.