Quick Highlights
- Beyond the trading, the coinbase is now moving into stablecoins, custody and derivatives.
- Traditional finance giants and global exchanges are turning up the heat.
- TIME named Coinbase a top disruptor shaping crypto’s future.
Coinbase Is Changing Fast Because It Has To
Let’s be honest Coinbase isn’t the same company it was just a few years ago. It used to be the place to buy and sell Bitcoin, but now? It’s trying to be much more than just a crypto exchange.
Why? Because the competition is getting fierce.
From global exchanges with lower fees to Wall Street giants entering the crypto custody market, Coinbase has realized that sticking to simple trading isn’t going to cut it anymore.
So it’s now going big on services like crypto custody, staking, derivatives, and stablecoins. But there’s a catch: most of Coinbase’s revenue still depends on Bitcoin prices.
When the market’s booming, that’s great. When it’s not… well, investors get nervous. And lately, there’s been a lot to be nervous about.
Coinbase’s Strong Start in Custody Faces New Threats
One area where Coinbase has really made a name for itself is ETF custody. In fact, it’s now holding assets for eight of the top 11 U.S. Bitcoin ETFs, which pulled in $43 million in revenue last quarter alone.
That’s impressive but it might not last forever.
Big financial players like State Street and BNY Mellon are eyeing the same space.
If new legislation passes, those legacy institutions could jump in, putting real pressure on Coinbase’s lead. At the same time, Asian exchanges are undercutting Coinbase on fees.
So not only is the U.S. market getting crowded, but global players are also grabbing market share.
Coinbase’s Big Moves: Derivatives, Stablecoins & Staking
So, what’s Coinbase doing about all this?
It’s not sitting still. The company recently bought crypto derivatives exchange Deribit for $2.9 billion a bold move that shows it wants to lead in that fast-growing sector.
It’s also leaning heavily into USDC, the stablecoin it manages with Circle. USDC now brings in more revenue than anything besides trading.
And because it’s not tied directly to crypto market prices, it offers more stability something Coinbase definitely needs.
Then there’s staking. If you’ve used Coinbase recently, you’ve probably seen staking options everywhere. That’s no accident.
It’s become a high-margin business for them and offers a more predictable income stream than pure trading.
Coinbase’s Global Plans Hit Some Snags
Coinbase isn’t just focused on the U.S. market. It’s expanding across Europe too, and recently got licensed under the EU’s MiCA regulation via Luxembourg.
That opens up a lot of doors. But not everything is going smoothly. Back in July, Coinbase launched a flashy new TV ad in the UK, pitching crypto as the answer to a broken financial system.
It looked great until regulators pulled the plug. Why? The ad didn’t include proper risk warnings.
It was a reminder that even as Coinbase pushes into new markets, it still has to play by a whole new set of rules.
TIME Acknowledges Coinbase’s Increasing Impact
Coinbase continues to receive positive reviews in spite of these setbacks. TIME Magazine recently named it a “disruptor” for its role in influencing U.S. crypto policy and listed it among the 100 Most Influential Companies of 2025.
It’s also continuing to build long-term value through Bitcoin. In Q2, Coinbase bought 2,509 BTC worth about $222 million bringing its total holdings to 11,776 BTC. That’s enough to nudge ahead of Tesla in terms of public Bitcoin ownership.
Nevertheless, the coinbase cannot escape the gravity of bitcoin
For all its development and diversification, the coinbase is still deeply tied to the ups and downs of the crypto market. The second quarter earnings recalled expectations, and the stock drowned 15%.
Still, there are reasons for optimism. The company has a market cap of $83 billion, and its stock has climbed 70% since Donald Trump’s election thanks to a more crypto-friendly political climate.
So while it’s not all smooth sailing, Coinbase remains one of the most influential forces in the crypto space.
