Coinbase posts $1.4 billion in Q2 revenue, claims it will improve ‘regulatory transparency’

Top US crypto exchange Coinbase beat market estimates for the quarter today – posting $1.4 billion in revenue and $36 million in net income.

Revenue was down 11 percent overall.

But Coinbase said in the results that the business of allowing customers to hold interest on its USD Coin (USDC) stablecoin helped the company make a big profit, with its balance sheet growing to $7.8 billion – an increase of $733 million from the previous quarter.

In a letter to shareholders, the San Francisco-based company said the result comes as it sees “extraordinary steps to achieve regulatory transparency” that is “a major opening for innovation in the industry.” This optimism comes as the company is embroiled in a legal battle with the Securities and Exchange Commission (SEC) over its crypto asset policies.

The non-profit group Stand With Crypto, which launched last year, has registered more than 1.3 million “crypto advocates,” and “advancement of crypto legislation is now a top priority,” according to the company.

“Politicians on both sides of the aisle are paying attention, and there is real energy in passing legislation in both the House and Senate,” Coinbase said. “We will continue to do this moving forward through the fall elections and beyond.”

Coinbase's total transaction revenue in the second quarter was $780.9 million, compared to $327.1 million in the previous quarter. Trading revenue was $781 million, down 27 percent.

But the company said the number of transactions on Base, Ethereum's layer-2 measurement network, grew more than 300% quarter-on-quarter.

“In Q2, we are laser focused on reducing the barriers that come with onchain transactions to achieve our goal of driving crypto utility,” he said. Our work with Base to improve efficiency and lower costs resulted in 300% [quarter-over-quarter] The growth of the number of transactions

In the year Coinbase, which went public in 2021, has experienced a growing role in the traditional financial sector this year: the company has partnered with many of the major asset managers that have launched Bitcoin ETFs to provide key crypto protection services.