Coinbase Company Overview
Coinbase Global (COIN) is the leading crypto exchange platform in the United States by trading volume. The company designs products and services to meet the needs of retail crypto investors, institutions, and developers. For retail investors, Coinbase provides an exchange for more than 275 digital assets. On the institutional side, Coinbase clients gain access to a full-service prime brokerage platform with best-in-class liquidity across the crypto space. Meanwhile, developers benefit from Coinbase’s tools and products that integrate within its ecosystem.
Its trusted platform serves as a compliant gateway to the on-chain economy, powered by critical infrastructure and blockchain technologies, including self-custody wallets, decentralized applications, and open community platforms. It enables users to discover, trade, stake, store, spend, earn, and transfer global crypto assets quickly and securely.
Coinbase’s Stablecoin Business is Thriving
In addition to being a leader in crypto trading, Coinbase holds a stake in one of the fastest-growing crypto businesses: stablecoins. A stablecoin is a type of cryptocurrency that is pegged to a reserve asset. In Coinbase’s case, its USD Coin (USDC) stablecoin is pegged to the U.S. dollar. The benefit of stablecoins is that they allow users to earn interest and process transactions 24/7 at a fraction of the cost of a legacy financial institution.
USDC, which Coinbase runs with Circle Group (CRCL), has experienced tremendous growth. Stablecoin revenue jumped 48% year-over-year in 2025, and now comprises nearly 20% of COIN’s total revenue. Not only does USDC help to balance its erratic crypto commission revenue, but it’s also an extremely high-margin business. Despite depressed crypto prices, Coinbase’s gross margins are a juicy 85%.
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The USDC stablecoin’s blistering growth is expected to continue. Last year, the USDC circulation grew to 75 billion, marking a 72% year-over-year increase. Transactions more than doubled year-over-year. Meanwhile, Wall Street analysts expect a compound annual growth rate of 40% in the next few years. Finally, in the second half of 2025, the U.S. government passed the GENIUS Act, establishing a market structure for regulating stablecoins. This regulatory clarity, previously absent, should open the door to more stablecoin use in 2026.
Coinbase: A Stealth AI Play
Another bullish catalyst for USDC is the agentic AI revolution. USDC has become the dominant payment mechanism of choice for autonomous, real-time, and low-cost AI-driven payments. 98% of autonomous AI transactions are done using USDC, and as the AI economy grows, so will USDC revenues.
Coinbase: Strong Balance Sheet, Reasonable Valuation
With a price-to-book ratio of just 3.54x, Coinbase has transformed into an attractive value play.
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Meanwhile, despite the volatility of the crypto business, COIN has nearly $12 billion in cash on hand.
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Coinbase Chart Analysis
After breaking below the 50-day moving average in late 2025, Coinbase’s chart shows signs of a recovery. COIN shares recently regained the 50-day moving average and formed a picture-perfect daily bull flag. With price just above the 50-day moving average, investors have a clear line-in-the-sand to trade against.
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Bottom Line
Coinbase has evolved from a retail crypto exchange into a diversified financial powerhouse. By leveraging its partnership with Circle and capitalizing on the regulatory certainty provided by the GENIUS Act, the company has insulated itself against the boom-and-bust cycles of Bitcoin prices.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
