Coinbase Battles to Stay Ahead as Crypto Competition Heats Up: FT

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Amin AyanSun, Sep 14, 2025, 3:19 PM 3 min readCoinbase is racing to stay ahead of a wave of new competitors as it pivots from being a pure crypto exchange to a broader financial services platform.Key Takeaways:Coinbase is expanding beyond trading into custody, derivatives, and stablecoins as competition intensifies.Despite strong ETF custody revenues and new ventures, Coinbase remains heavily exposed to Bitcoin price swings.Trading fees, still the core of Coinbase’s revenue, rise and fall with crypto market volatility.With Bitcoin hitting record highs and US regulation creating fresh momentum for institutional adoption, the company faces growing pressure from both traditional finance and emerging crypto players, according to a new report from the Financial Times.In July, Coinbase launched a high-budget TV ad in the UK that framed cryptocurrency as a solution to a failing financial system.The ad was rejected for not meeting broadcast standards due to a lack of risk warnings.The campaign came as the exchange seeks to expand beyond trading into custody, payments, asset management, and derivatives.Founded in 2012, Coinbase entered the S&P 500 this year and now boasts a market cap of $83 billion.Its shares have surged 70% since Donald Trump’s election, thanks in part to his administration’s crypto-friendly stance.However, second-quarter earnings disappointed, and the stock dropped 15%, signaling investor caution.A growing concern is the company’s exposure to the price of Bitcoin. Trading fees, still the core of Coinbase’s revenue, rise and fall with crypto market volatility.Fee compression and competition from Asian exchanges are also eating into its margins.Coinbase has secured its position as custodian for eight of the top 11 US Bitcoin ETFs, earning $43 million in the last quarter of 2024 from that alone.However, new legislation could open the door for traditional custodians like State Street and BNY Mellon to enter the market, threatening Coinbase’s dominance.The firm is also eyeing tokenized stock trading and small business banking services, while leaning heavily into stablecoins and staking.Revenues from its USDC stablecoin partnership with Circle now trail only trading, while staking offers high-margin returns and defensibility.In its boldest move yet, Coinbase acquired crypto derivatives platform Deribit for $2.9 billion, signaling its intention to dominate that space.The company has also partnered with banks like JPMorgan and PNC to bridge crypto and traditional finance.Despite its expansion, analysts say Coinbase’s fortunes remain tightly tethered to Bitcoin’s price.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,618.25 -3.25 (-0.05%)Dow Futures45,896.00 -25.00 (-0.05%)Nasdaq Futures24,300.50 -8.75 (-0.04%)Russell 2000 Futures2,424.50 -1.10 (-0.05%)VIX15.69 +0.93 (+6.30%)Gold3,724.10 +5.10 (+0.14%)PortfolioSign in to access your portfolioSign inTop gainersUUUU Energy Fuels Inc. 13.82 +1.89 (+15.84%)OKLO Oklo Inc. 95.68 +12.97 (+15.68%)FIGR Figure Technology Solutions, Inc. 37.33 +4.83 (+14.86%)RZLV Rezolve AI PLC 7.72 +0.96 (+14.20%)DGNX Diginex Limited 10.50 +1.10 (+11.70%)Top losersMENS Jyong Biotech Ltd. 51.82 -9.68 (-15.74%)LRN Stride, Inc. 139.76 -18.60 (-11.75%)ABTC American Bitcoin Corp 7.08 -0.81 (-10.33%)RNA Avidity Biosciences, Inc. 40.22 -4.52 (-10.10%)RELY Remitly Global, Inc. 16.67 -1.49 (-8.20%)Most activeOPEN Opendoor Technologies Inc. 9.50 +0.43 (+4.69%)TSLA Tesla, Inc. 410.04 +14.10 (+3.56%)NVDA NVIDIA Corporation 177.75 -0.07 (-0.04%)SNAP Snap Inc. 7.46 +0.12 (+1.63%)GRAB Grab Holdings Limited 6.14 +0.14 (+2.33%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersGOOG Alphabet Inc. 251.76 +10.38 (+4.30%)OKLO Oklo Inc. 95.68 +12.97 (+15.68%)ASML ASML Holding N.V. 867.30 +53.43 (+6.56%)GOOGL Alphabet Inc. 251.61 +10.81 (+4.49%)UBER Uber Technologies, Inc. 98.85 +2.96 (+3.09%)Top economic events