Coinbase Global, Inc. Price & Performance (COIN)

Non GAAP financial measures should be considered in addition to, not as a substitute for, GAAP measures. We are once again using say, to enable our shareholders to ask questions. In addition, we'll take live questions from our research analysts. That, I'll turn it over to Brian for opening comments. All right. Thanks, Anil. Crypto's voice was heard loud and clear in this recent U. S. Election. And it's the dawn of a new era for crypto. President Trump is moving fast to fulfill his promise of making The U. S. The crypto capital of the planet. And the most pro crypto Congress we've ever seen is now leading the charge on stablecoin and market structure legislation. Given The U. S. Leadership here, the rest of the world is taking notice and will be under pressure to embrace crypto adoption. So it's hard to overstate the significance of this change that's happened in the last few months have a number of new opportunities in front of us now to go build in 2025. Let's talk about our financial performance in 2024 though, just to get started here. And it's I'm very, very optimistic on this next few years. In 2024, our total revenue more than doubled to $6,600,000,000 with $3,300,000,000 in adjusted EBITDA making two straight years of positive adjusted EBITDA, By the way, if you look back, five of the last six years, we had positive adjusted EBITDA now.

So we're completing this transition to being an all weather company that can can show positive adjusted EBITDA. Our subscription and services revenue had an outstanding 64% year over year to $2,300,000,000 driven by USDC, staking and Coinbase One. Our international revenue share reached 19% in Q4, and this is due to the improved payment rails and localization We've got a repeatable playbook now that we can launch in these new markets and get them to contribution margin positive. And so we're going to keep doing that in more markets. And finally, we're just so well positioned to capitalize on these new regulatory tailwinds It's been incredibly validating of this long term strategy we've taken at Coinbase to be the most trusted and compliant and it's finally paying off. Let's talk for a minute about how crypto is now going mainstream, the regulatory environment. There's there's clarity on the horizon. Every time you think about that, you should think that this is really TAM expansion for Coinbase Coinbase. Coinbase is going to be the platform that's going to power many of these companies that are coming in and trying to integrate crypto. And we like to say that on chain is the new online.

It's a little bit like early 2000s when every company had to figure out how to adapt to the Internet, Up to 10% of global GDP could be running on crypto rails by the end of this decade. Coinbase is going to be the preferred partner to come in and build this for many of the companies out there because we have the most trusted and scalable infrastructure with the longest track record. [indiscernible] 2025 is going to be about growing revenue with our existing products, going to be about driving utility in these new categories where crypto's getting to scale, and it's going to be about building the foundations to power this next decade of growth. So first, we're going to be driving more revenue in our core businesses. Let's deep dive into that. Trading is often where we start with here. That's the earliest thing that we got into in crypto with Coinbase Coinbase. And we're going to continue to expand on that leadership position. So we'll be delivering best in class derivatives trading as part of our global offering. Going to be accelerating asset addition as Clarity emerges there. Winning more and more advanced traders on our platform and I'm really proud to share actually that we reached an all time high for both US spot and global derivatives market share in Q4.

Incredible outcome due to the hard work of the team So 2025 is looking very good. It's off to a very good start here. We also have a stretch goal to make USDC the number one dollar stablecoin. We're very bullish on stablecoins. We think USDC has a network effect behind it. And the compliant approach that they've taken is I think going to be really defensible long term. So we'll be accelerating the market cap growth of USDC with more partnerships. And leaning into new use cases like adding payment support across our product suite. We'll be accelerating our international expansion by and growing subscription services revenue by going on offense with in store and retail staking growing our assets under custody for our custody business, I expect it'll be a banner year for Coinbase One as well, especially in our international markets. So that's our first, prong of growing revenue with our existing products. Next, we really want to drive utility to get this next wave of mass adoption going for crypto. We think crypto is much, much more than just an asset class that people want to trade. There's going to be daily use cases for everybody in the world as crypto updates the global financial system.

And one of those big categories is payments. You know, we're already at scale, I'd say, on stablecoin Coinbase. There was $30,000,000,000,000 of crypto stablecoin volume last year. That was up 3x year over year. And so we're moving with Hase to integrate crypto payments across our entire suite of products, We think that will be a big business over time. And we're also solidifying base as the number one chain for building, for startups to build on chain and large companies. We're going to continue to lower transaction fees on base. We're going to accelerate the flywheel with retail users and there's a really nice tie in here where, CDP, our Coinbase developer platform, can provide a lot of tools to help these these companies integrate with base. And so been a great tie in On CDP, specifically, we're going to keep making sure that it's the leading platform for any company to develop applications on chain. And, I think that'll allow hopefully thousands of companies to come integrate and Coinbase can power a lot of that behind the scenes for them. Okay. So we talked about growing revenue. We talked about driving utility. The third prong here for 2025 is about scaling our foundations.

And we've got a world class policy team. They're laser focused on getting some landmark crypto legislation passed. We're going to continue to support StandWithCrypto.org, hopefully get that to 4,000,000 advocates by the twenty twenty six midterms. So we're not taking our foot off the gas there. We're also we announced further donations to Fair Shake Super PAC to support pro crypto candidates, in 2026 and and beyond. So there'll be lots of policy efforts continuing and not just in The U. S, by the way, there'll be this will be taking place in a number of countries. And then we're also going to continue to scale our back end services as continues to reach new all time highs and transaction volumes. Every time we hit a new order of magnitude, we have to rearchitect our back end systems and this is what supports our own products, but it also is supporting many, many third parties now. So all these all the above is how we're going to expand our lead and define the future of crypto. And in closing, I just want to remind everybody, I hope everybody appreciates this. I mean, we're really entering a golden age for crypto here.

The opportunity in front of us is unprecedented to update the financial system and increase economic freedom around the world. The regulatory overhang is lifting. Governments are leaning in. We're shaping the next chapter of crypto from trading to payments to consumer apps and beyond. 2025 is going to be a very good year.

And I'll turn it over to Alicia now. Thanks, Brian. Good afternoon, everyone. As Brian shared, fourth quarter was a strong quarter for Coinbase and we wrapped up a great year. I'm proud that we executed on our three financial priorities. We diversified our revenue. We generated positive adjusted EBITDA, and we maintained operating discipline while we invested opportunistically to achieve our business goals.

So let's dive into our results.

All comparisons I make will be on a quarter over quarter basis unless I note otherwise. Starting with the macro backdrop, given the election of the most pro crypto Congress and president in history. Underpinning this in the quarter, we saw average crypto market cap increased 33% and crypto asset volatility increased 27%. With this backdrop, our Q4 total trading volume was $439,000,000,000 up 137%. Our consumer trading volume was $94,000,000,000 hundred and seventy six percent and we outperformed The U. S. Spot market. Which increased 26%. As Brian shared, this was an all time high. Consumer transaction revenue was $1,300,000,000 up 179%. We saw strong growth growth in both simple and advanced trading volume. Our mix of consumer trading volume was very similar in Q4 as compared to Q3. During the quarter, we listed 13 new assets, including popular Meme Coinbase like [indiscernible] We invested in trading experience improvements, platform stability, and collectively these efforts addition to the market conditions, drove our MTU growth of nearly 24%, up to 9,700,000 MTUs. Nearly half of our trading customers in the fourth quarter were either new to Coinbase or resurrected from over a year ago. And we're pleased to see these market participants come into the space.

Our institutional trading volume was $345,000,000,000 up 128% also outperforming The US spot market. Institutional transaction revenue was $141,000,000 up 156%. The fourth quarter, we saw strong adoption of the Prime product suite. Across custody, trading, financing and staking. Our top clients are engaged with most of these products in 2024. And our onboarding pipeline remains robust. Our Prime Financing product had all time high loan balances in the fourth quarter in connection with the strong market conditions, and we see elevated trading amongst clients who are using financing. Turning to our subscription and services revenue, which reached $641,000,000 up 15% Our revenue growth was driven by higher asset prices and USDC market cap. As well as native unit inflows across staking, custody, and the USDC within our products.

I want to touch on two points within subscription and services. First, our Stablecoin revenue declined $21,000,000 or 9%.

We are super pleased to see USDC market cap increase and our on platform balances grew substantially during the quarter. However, the lower interest rate environment and the impact of a new eUSDC ecosystem participants more than offset this growth. Second, other subscription and services revenue grew $33,000,000 or 50%.

This was largely driven by Coinbase One.

In early December, we announced Coinbase One exceeded 600,000 paid members, and we've continued to see strong growth since then. Switching to expenses. Total Q4 operating expenses were $1,200,000,000 up 19%. Our expense growth primarily was driven by higher transaction expenses in connection with Technology and Development, General and Administrative and Sales and and marketing collectively grew by over $84,000,000 or 10% quarter over quarter due to high performance marketing spend, higher USDC rewards and some policy related spend in the quarter as we pursued advocacy efforts within the crypto space. Our fourth quarter adjusted EBITDA was $1,300,000,000 and net income was also $1,300,000,000 Net income benefited by a $476,000,000 in pretax gains on our crypto asset investment portfolio. The vast majority of this gain was unrealized. I want to note that on an after tax basis, this represented $357,000,000 of games.

Lastly, our USD resources grew to $9,300,000,000 the end of the quarter. Our strong balance sheet gives us the resources and flexibility to invest in the business. Provides capacity for acquisitions, enables us to invest in more crypto assets, or opportunistically address the capital structure via share or debt repurchases. Generally, we believe building a strong balance sheet provides us maximum optionality to capitalize on whatever opportunity we find as ARIs.

Before we get to Outlook, I want to highlight one important change in disclosure. In January, the SEC issued Staff Accounting Bulletin 120 which rescinded the Gensler era SAB 121. Which in turn required us to record customer crypto assets and liabilities on our consolidated balance sheet. We early adopted Sab 122. Repealed Sab 121 and it reverses that requirement. As such, we are no longer reporting safeguarded customer assets and safeguarded customer liabilities. On our balance sheet. In its place, we've reinstated assets on platform as a key business metric. Which reports the amount of crypto and USDC we are securely storing on behalf of our customers. The only material change is the location of where we assets in our audited financial statements. No change to our operational and legal processes of securely storing customer assets no change to our obligations or risks. As of December 31, we had $4.00 $4,000,000,000 in total assets on platform, approximately 12% of total crypto market You can see our assets on platform is included in an audited footnote within our Finally, I'll close with a few comments on our outlook. [indiscernible] We've had a strong start to the year and have generated roughly $750,000,000 in transaction revenue year to date.

We expect Q1 subscription and services revenue to grow sequentially and be in the range of $6.85 to $765,000,000 We expect growth to be driven by higher stablecoin revenue continued growth of Coinbase One subscribers and the higher average crypto asset prices we've seen so far in the quarter. With regards to stablecoin revenue, Brian mentioned earlier our stretch goal to make USDC the number $1 stablecoin. I think it's important to note that we hope to achieve this over the next few years. We expect Q1 technology and development and general administrative expenses to be in the range of $750,000,000 to $800,000,000 On sales and marketing, we expect the range to be between $235,000,000 to $375,000,000 Where we fall in this range will largely depend on whether we continue to see attractive performance marketing opportunities, and the product USDC balances, which drives USDC rewards.

With that, Danielle, let's go to questions.

Okay.

So we'll take the top three questions from the Save portal. The first one is, how did the liquidation event that took place in early February affect Coinbase users? We're Coinbase users mostly buyers of that. Or have you lost users as a result of the violent price action that took place? Alicia?

Well, I need to laugh at this question a little bit because Vale Hatility has been inherited to crypto. The price actions we saw in February are no different than the price actions we see on an average week or an average month within our industry. The markets recovered quickly, And I think it's really important to note that our retail users are long term hodlers. We tend to see them hold for long periods of time and opportunistically come in and out of the markets when they see conditions that are attractive to them. So there was no meaningful impact to our business as a result of the February volatility and market dislocation we saw in the broader Second question, regulatory headwinds are shifting to tailwinds. Base is skyrocketing to be the top layer too. Broad USDC adoption, international perps business is booming, AI leader, CDP is the AWS of crypto. And the inclusion of Coinbase in the S and P 500 potentially coming soon. Any other promising growth drivers to highlight? [indiscernible] Thanks for the question. I promise I didn't plant that or uproot it myself. But I think what the question is touching on here is that we are a multiproduct business.

We have a diverse stream of revenue from different revenue from different product lines that we have out there. Proud of actually that shift that we've made to having a retail platform, an institutional platform, a developer platform, And so that bodes well for I think the TAM of what we can get to over time. You asked about promising growth drivers to highlight. One of the things we try to do in these earnings calls is only talk about things which are now live. And I don't like that you've announcing vaporware, but I can assure you there's lots of things we're working on internally, which I'm not ready to announce today.

Guess I'll just go back to a couple that I am particularly excited about, that I mentioned previously.

And one is just this this next act for crypto. It's it's no longer just an asset class People are using it daily utility for more and more things. Base is powering, crypto utility across a whole wide range of apps. Payments are taking off with Stablecoins. As I mentioned, things like prediction markets are providing, real real world utility. Lots of people who weren't previously specifically interested in crypto or trading, but they're finding it as a new source of truth out there. And then I'd say our international expansion is also really exciting right now. And lots of M and A opportunities. Some of it will just do organically as well. We have this playbook now where we've been able to get contribution margin positive and all the countries we've launched and actually this point. And so that just tells me we should be doing more of them. And, we're going to go build out this this world class trusted trading and financial services infrastructure in as many many countries as we can.

Great. Final question, what are some initiatives that are now possible to explore under the new regulatory regime? Brian?

Yes, it's really been a sea change and it's been great. I feel like we have access to all the relevant decision makers and folks in government now, that that doesn't mean they're always going to do what we want, but at least we can get meetings and share our point of view. They can take input from every all the relevant parties to come up with clear rules. So one that I'm really excited about is Perpetual Futures. Most crypto trading actually happens with directional futures outside The U. S. And The U. S. Was really far behind on this. We made this point to folks many times in the last administration. We couldn't actually get approval to do it in The US.

Hopeful there's a path to do that now in The U. S, which would bring a lot of the trading volume back onshore in this new regulatory regime. Also pretty interested in tokenized securities and equities, the traditional securities and equities out there. Think that it offers a lot of promise to consumers around being able to trade 20 fourseven, internationally who maybe don't have easy access to this being able to trade, trading fractions of a share, the clearing and settlement could happen real time. A number of kind of fee takers in the middle could be it could be the whole thing could be simplified and optimized if happening on change just because crypto is a way to update the financial system. So that's a pretty promising area that could be exciting over time for the whole industry. Prediction markets I mentioned, there was sort of a loss of trust in our institutions around the media and what's happening in the world. And so people are trying to figure out what's true and prediction markets are pretty interesting way to get to get truth, about what's actually happening in the world, not just around elections, but all kinds of things.

And then we're seeing more and more partnership opportunities. Traditional financial firms, tech players are all reaching out in 2025. With this new regulatory environment. M and A is legal again in The United States. So sort of jokingly I'm saying that. But there's an incredible pipeline of companies out there that could make sense to purchase as well. So, yeah, a lot of good things on the horizon.

Thank you. So with that, Sarah, let's take our first question from the line, please.

Thank you. Your first question comes from Owen Lau with Oppenheimer. Your line is open.

Good evening and thank you for taking my questions and congratulations on a quick So when I look at your December and January market shares for U. S. Spot crypto, There have been many lower cost products out there since 2021 like FTX and now spot ETF. You please talk about how you can still gain shares, not just one month or two months? But through the cycle what makes Coinbase different from other platforms? Thanks.

Yes. Well, thanks for noticing that. We were really proud to see that we did hit an all time high for both U. S. Spot and global derivatives market share in Q4 And, you know, look, crypto is on the rise. There's going to be lots of companies that are integrating crypto. We think that's a good thing. We think that that's to get more and more global GDP running on crypto rails, we're going to have to have every bank, every fintech every payment platform, around the world begin to integrate here. And so Coinbase, we want to do that on our platform, but we also want to power this across all the other countries and companies out there.

And so we're very focused on playing a role in that with our developer platform. So our share did grow quite a lot. I think that just speaks to the trust that people have in Coinbase as a platform. We don't see it as a zero sum game. We're trying to grow the size of the pie 100x for everyone.

Oh, and I might just add on, we've seen a very strong start to Q1. And we believe that the underlying efforts that we're making to add assets, to continue to improve the user experience, our platform stability and effective marketing will continue to position us well to gain share over the long term. We've always had experiences where a certain week, a certain month that our share falls off during due to different trading pairs being popular in the market that we may not have either on our platform or the right pricing for. But what we see is over the long term, we can durably gain share and retain and grow users on our platform.

The next question comes from Devin Ryan of Citizens JMP. Your line is open. Thanks so much. Hi, Brian.

Hi, Alicia. A question on international derivatives. Obviously, just just gaining kind of massive traction there and another great quarter of growth. It seems like the fees there are quite a bit lower obviously. And so also appreciate that might make sense as you're taking share at this type of rate. But I'm curious as you think about kind of take rates in derivatives kind of longer term, should we expect that they would kind of hold the line with where they are now or could there be an opportunity to actually increase the take rates as you get to kind of a more mature share? Just curious kind of how to think about this opportunity longer term as you continue to grow it? Thanks.

Thanks, Devin. So right now, we're focused on building liquidity and building trading volume. And we are providing incentives to various market participants in to focus on building that depth of liquidity in each of the order books as we put them on the platform. So yes, I do believe that over time our fees will evolve and become more mature as we gain the to the scale and market position that we seek to have. And that right now, we are not focused on top of the range. That said, we're going to monetize this competitive with the market, and this is a lower priced product than spot trading. And so you can see us be in a competitive market position here, but not current levels that we are today.

The next question comes from Benjamin Budish with Barclays Capital. Your line is open.

Hi, good evening and thanks for taking the question. I was wondering if you could unpack a little bit of some of the activity, the trends you're seeing in some of the either kind of new to Coinbase or resurrected customers you talk about what is the sort of activity level? Are they coming over with large accounts? Are they in a lot of trading? Where is a lot of the trading coming from your sort of back book of existing customers? So what does that cohort look like? And maybe similarly with Coinbase One Coinbase, One, what is the activity level like of the new traders? How would you describe that group? Thank you.

All right. I will start this and Brian, please feel free to add on. So don't break out details on our customer cohorts in general, but what I would say is that new users tend to come on for either new coins that we list or they come on as first time users of crypto where they're typically buying Bitcoin or Ethereum or large market cap assets. Those tend to be two waves of new user adoption. New product or new into crypto. But we're actually seeing those just the benefits of our effective marketing program, and we are [indiscernible] proud to say over time, our marketing has always been effective at Very good.

Return on customer acquisition. It's a one year return on investment. And so that cost of customer acquisition, we get paid back within a year. And so that's the trading activity that really typically drives that return. Resurrected users, these were users that we've always had on the platform that have already said, oh, I'm interested in crypto, but I'm not a daily active user. I'm just someone who was buying and hodling. And they tend to reengage whenever you see higher volatility, higher price and crypto in the news. And those tend to be similar trends we've seen over time with our users on our platform. They're more engaged in these kind of more peaky market conditions. With regards to Coinbase One, opened this product up internationally and so a lot of our growth has come from making Coinbase One more attractive around the world, more available around the world with new benefits. These are users who are actively trading Typically, every single month because they benefit from their trading fees by having this monthly payment that they make to us. So these tend to be more active users, and we tend to see Coinbase One users more deeply engaged with all products on our platform.

Yeah.

I think just to add to that, people who are holding crypto and they're not checking it that often maybe, and then the price ticks up, They'll resurrect. They'll come back. To check on their balance. But every time they do that, there's an opportunity to put other products front of them. Maybe they want to get a loan on their Bitcoin.

Maybe they want to have a Coinbase card. Maybe they want to earn staking rewards. And so maybe do payments to peer to peer payments or anything like that. So there's more and more [indiscernible] And, you know, so it's all of the above, I think, is really the short answer to your question. There Those users coming back are doing everything The next question comes from Ken Worthington of JPMorgan. Your line is open. Hi, good afternoon. Thanks for taking the question. We have a more friendly administration, which you noted. The White House repealed 21 right out of the gate. As we look forward, what are the more or most important pieces that Congress and regulators have to get right in order for the construct to in order to get a [indiscernible] actually developers and markets that we're hoping to see?

Yes, I'll share a few thoughts on that and then maybe Paul if you want to add anything. So the first part of it is really market structure. Legislation being passed. And another word people use for this is is token classification, which is essentially answering this age old question of which of these are commodities, which are from our securities, of them are payments, like, or currency, stablecoins, and which of them are something else entirely that's not regulated like artwork or collectibles. And so, if we can get that token classification clarified in new legislation, if Congress can really do that, think it would open up huge pools of capital to flow into crypto. You know, all kinds of good things happen. Startups, can start to build. So that's the first piece is market structure or token classification. Second piece is around Stablecoins. And, we really want to see a clear framework emerge to have dollar backed stablecoins be issued in The United States with clear legislation behind it. We want to make sure that there's a state pathway for those. Doesn't have to just be done federally. We want to make sure that you don't have to be a bank, although you could.

Issue a Stablecoin. I think if you're not doing fractional reserve, you shouldn't need a banking license. You could be at, for instance, a trust company. You know, you need you need to pass audits that show you have % reserves, things like that. So that would be those would be key pillars of a stablecoin bill.

Beyond that, I think it would also be great to see a strategic Bitcoin reserve in The United States We need to make sure that there's fair access to banking services, things like Operation Chokepoint don't happen again.

And just I'd say broadly, there's almost like a bill of rights for the American citizens that they the right to self custody and to own crypto and to use it These are foundational principles that we're hoping would come out of any legislation. Paul, anything? [indiscernible] I would just underscore, Brian, the need for a functional bill of rights. And fortunately, I think the executive order that the president issued provides really a nice foundation for that. You saw things like statements that commit to protecting lawful blockchain activities and promoting dollar backed stablecoins. Critically ensuring fair access to banking services. So I think the bones are in place to support that. And we're also quite encouraged by the early work of the crypto task force, the SEC. In which, under which or by which Commissioner Perk, I think, is made it very clear she intends to to move and move fast on providing real guidance to the market and especially to builders on what they can expect and process they can expect when they come in and meet with the SEC in the months and years ahead.

Next question is from Pete Christensen with Citi, Your line is open.

Good evening. Thanks for the question. Congrats on on the outstanding quarter and results.

Brian, I'm curious, I want to take a little bit more into the consumer acquisition strategy. [indiscernible] I'd love to hear your thoughts on how the crypto natives build up the value proposition for consumers to trade on crypto native solutions How does that value proposition or that differentiation evolve versus all in one TradeFi kind of solutions that are out there. Thank you.

Yes. Well, a lot of people come to the platform initially. They're curious about crypto. Coinbase has the most trusted brand. We've been around the longest. We're dedicated to crypto. And so that's the entry point for a lot of folks. We also do a lot of traditional marketing. We do a lot of referral marketing and growth programs within the company, which are very effective and positive ROI, we try to target that one year payback period that Alicia mentioned.

And so as they come in and they that's sort of often people's first foray into crypto. Start to learn a little bit more about it, and then they start adding on other products. Right? This is where they might do payments or staking or borrowing and lending or Coinbase card.

And eventually, we see businesses, onboarding as well, and they're using it for their own purpose [indiscernible] treasury management, hedge against inflation, maybe starting to pay vendors overseas, so you can see the [indiscernible] to start with, but then start to realize there's a broader potential here and they start to think about Coinbase as a primary financial account where they can participate in this new economy. Today, only about half of 1% of GDP is running on crypto rails. We think that that could expand dramatically by the end of the decade. And that starts where things start to get really exciting as this is a foundational account you might have for the you know, your participation in the global economy.

So I'm not sure if I answered your question directly. We could talk about there's crypto native competitors, there's traditional TradFi competitors, there's some that are specific each category out there. But if you have any further follow ups, just let me know.

I think just to double down on that, the way that we look at the competitive set is we are a crypto native competitor that plays deeply in and has leaned into the values of leaning into regulatory, leaning into security, leaning into ease of use. I think one of the things that Brian realized very early on was that being crypto native was akin to being digital native back in the day. If you look at something like You know, traditional retailers who added digital as a feature it was never nearly as impactful as building from the ground up digital native the way some like a company like Amazon did. And I think that that benefits us because even if you are, as Brian described, you know, somebody who's curious about crypto, you come in perhaps you're curious about Bitcoin, You're then you you come into Coinbase, you have a good experience, perhaps you try other assets, perhaps you try staking and are exposed to other crypto native and having that the rails and building blocks for that, including things like Coinbase, and wallet and USDC, I think provides us with a much stronger, durable competitive advantage over time.

The next question is from Patrick Mollie of Piper Sandler.

Your line is open.

Yes, good evening. Thanks for taking the question. So Brian, a few weeks ago you posted on X and said you felt like Coinbase needed to rethink its listing process given the sheer volume of tokens that are being created. On a daily basis a lot of which I would assume are kind of these meme tokens where you're seeing a lot of trading being done. So could you maybe just expand on those comments and talk about how you see your listed token offering evolving from here? [indiscernible] Thanks for reading that and bringing it up. I do think it's an important transition that is going through where we're seeing more and more tokens being created, and I think that's a really good thing. It means people are using crypto for lots of different, use cases. And it's actually, you know, by some estimates, we're at about a million tokens a week. Here. And, you know, many of those are lower quality or or Meme Coinbase it speaks to just the volume of what's happening here. It's a little bit like, you know, the early days of the Internet. You could have you could list all the major websites on a single directory, eventually, you needed Google Search to to sort through because the Internet just got so big.

And a little bit what we're seeing with crypto. So what this means for Coinbase is that, we need to deeply integrate decentralized exchanges into our product where I think the customer won't really know or need to care about whether it's trading on a centralized exchange or a decentralized exchange. They just they just want to look up an asset and maybe participate in that. But we also need to balance, giving people the customers access to what they want with appropriate disclosures and consumer protection so that they know that they're trading appropriate asset. It's not, something pretending to be that asset or you know, it's a little bit like again, searching through. There might be a hundred thousand results in Google, but you kind of want to only look at the first page.

Or if you search for some product on Amazon, there might be thousands of them, but you want you want to buy the one with the reviews. I think there's a variety of ways that we can balance that consumer protection with giving customers access to the broad range of assets out there.

The next question comes from John Todaro with Needham. Your line is open.

Thanks for taking my question and congrats on the really strong quarter. Brian, I have a broader question about the the overall vision for Coinbase to maybe become something a lot bigger than a crypto brokerage The two areas I see are stable Coinbase and then the tokenized real world assets, which which you've discussed them. You could see a world where a lot of that transfer activity ultimately happens on base. So one, just do you agree with that vision? And then two, is there anything more specifically you guys can do to push both of those segments?

Yeah. Well, that is definitely, the plan. I think, you know, like I said, people are coming coming to crypto think of it as an asset class they could trade.

And over the last ten years, it was the best performing asset class out there. But it's already become much, much more than that. And people who don't use crypto every day, they sometimes don't fully wrap their heads around that. But if you look at that stablecoin volume at $30,000,000,000,000 of volume last year, it grew three or 3x year over year. If that continues, it's going to be a really meaningful portion of global GDP. And so that's that's a huge one that you mentioned. And tokenizing real world assets or traditional securities. I mean, eventually, you know, real estate, the debt markets, like, private credit, everything should come on chain. It's really just a more efficient way of transferring value, and it can, do real time settlement and eliminate various risks that are out there in the in the ecosystem. So, I mean, there's lots that we can do on this front. I mean the broadest sense the thing that we're doing is we're trying to make all these products trusted and easy to use. I think that's where we differentiate the most on our brand. They we see in surveys that they do trust the Coinbase brand the most.

It comes from our track record of compliance, security, design, customer support, a variety of things go into that trust. And then we're trying to make it easy to use for the average person. So they may not understand quite how to access a decentralized exchange through DeFi and worry about private keys and addresses and bridging and all these complex topics. But if if we make it simple, we think there's an order of magnitude more people who will come and use our products. You know, on Stablecoin specifically, for instance, we can think we can really fuel a lot of that growth by just driving more partnerships with global and local players like Stripe and Yellowcard to do more global adoption. We've been adding a number of additional stablecoin trading pairs on our platform. We've been offering rewards to our customers when they hold USDC.

So almost like having a checking account in a not even a savings account. It'd be like a high, I guess, like a, you know, something that pays much more like owning short term treasuries or something. But you can have that in just one account.

And, these are things we can do to, to help drive adoption of these of these various things. So I mean, longer term, it's like we we want to be the primary financial account for many people in the global economy. And so you could compare that to a brokerage, you can compare it to banking, you can compare it to a payments company, think it has aspects of all of those things in in the limit here. That's the aspiration. And so that's a pretty exciting that's a pretty exciting opportunity. And one can think about what the value of that might be over time.

The next question comes from Dan Dolev of Mizuho. Your line is open.

Hey, guys. Great results out there.