Coinbase's Non-Trading Revenue Falls Hard, Raises Concerns
Coinbase Global (COIN) wants to be seen as more than just a crypto trading platform. The company's CEO highlights subscription and services revenue, saying it makes the business more predictable. However, this line of revenue has its own set of issues.
In the first quarter of 2026, subscription and services revenue fell by 16% compared to the previous quarter, which is a worrying sign. This metric was supposed to be the 'calm part' that would balance out trading swings, but it didn't hold up as expected.
Stablecoin revenue, led by USDC, accounted for about half of this line and fell with token prices and protocol reward rates. Coinbase captures around 50% of all USDC economics, according to the CFO, who ties that revenue share to overall USDC supply and adoption.
The company is willing to share its piece of USDC with other players to build the network. For example, they are embedding USDC with Hyperliquid, a major player in perpetual futures, by sharing economics.
Rules and regulations surrounding stablecoins are also uncertain, with the CLARITY Act stalled in a Senate vote in mid-September.