Coinbase has now surpassed two of the world’s largest securities exchanges in terms of transaction revenue, as reported by a crypto analyst from the private bank Coutts.
The crypto exchange has generated $5.75 billion in transaction revenue over the past 12 months, compared to $4.54 billion for the Nasdaq, where many of the world’s most valuable companies such as Apple, Google, and Microsoft are traded. Coinbase has also exceeded the Stock Exchange of Hong Kong (HKEX) with $2.67 billion and Brazil’s Bolsa Balcão with $1.81 billion in transaction revenue over the same period.
It is important to note that these numbers are not directly comparable and vary depending on the fees charged per transaction by the exchanges, whether for stocks or Bitcoin, rather than just the number of transactions or the platform’s popularity. According to Coutts’ data, all major crypto, stock, and commodity exchanges worldwide collectively generated about $51.27 billion in transaction revenue.
In comparison to the world’s largest exchanges, Coinbase’s transaction revenue growth, although significant, still falls short. The London Stock Exchange (LSE) recorded $10.82 billion in transaction revenue over the past year, while the Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE), reported $9.16 billion in transaction revenue.
Mouloukou Sanoh, CEO of liquidity provider MANSA Finance, pointed out that while Coinbase’s transaction revenue surpasses many major exchanges, its transaction volume is behind the NASDAQ. Sanoh mentioned that Coinbase’s volume lags behind all exchanges listed in Coutts’ data but due to higher fees, it results in higher transaction revenue for Coinbase.
Sanoh predicts that Coinbase is set to continue surpassing traditional exchanges in revenue and could potentially reach the third position in total transaction revenue by 2025. However, he anticipates that it may take between 10 to 20 years for Coinbase to exceed the NASDAQ in overall trading volume.
Despite Coinbase’s potential for growth in various regions outside its core U.S. market, such as Latin America, Africa, and Europe, its sales declined to $1.2 billion in Q3 2024 from $1.45 billion in the previous quarter. The company reported a $75 million profit compared to $2 million in the previous year.
Coinbase did not respond immediately to Decrypt’s request for comment.