Coinbase Global, Inc. is the largest U.S.-based cryptocurrency exchange, offering a secure platform for buying, selling, and storing digital assets like Bitcoin and Ethereum.
Coinbase
Coinbase: Definition, Growth, and Recent Developments
Coinbase Global, Inc. is the largest U.S.-based cryptocurrency exchange, offering a secure platform for buying, selling, and storing digital assets like Bitcoin and Ethereum. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase serves over 108 million users across more than 100 countries and holds custody of approximately 12% of all Bitcoin and 11% of staked Ether .
Core Business and Services
Coinbase provides a comprehensive suite of services for both retail and institutional clients:
- Retail Trading: User-friendly interface for buying and selling cryptocurrencies.
- Advanced Trade: Formerly Coinbase Pro, offering advanced trading tools.
- Coinbase Wallet: A self-custody wallet for decentralized finance (DeFi) and NFTs.
- Staking Services: Allows users to earn rewards by participating in network validation.
- Coinbase Commerce: Enables merchants to accept cryptocurrency payments.
- Custody Solutions: Secure storage services for institutional investors.
The company generates revenue primarily through transaction fees, which vary based on trading volume and market conditions.
Financial Performance and Market Position
In 2024, Coinbase reported:
- Revenue: $2.31 billion
- Net Income: $2.58 billion
- Assets: $22.5 billion
- Equity: $10.3 billion
As of May 2025, Coinbase's market capitalization stands at approximately $52.78 billion .
Recent Developments
Inclusion in the S&P 500
On May 19, 2025, Coinbase became the first cryptocurrency exchange to be included in the S&P 500 index, marking a significant milestone for the crypto industry. This inclusion reflects the growing acceptance of digital assets in mainstream finance and is expected to increase institutional investment in the company .
May 2025 Cyberattack
In May 2025, Coinbase disclosed a cyberattack that compromised personal data of less than 1% of its users. Hackers bribed overseas customer support agents to gain access to sensitive information, including names, addresses, and partial Social Security numbers. According to Coinbase, no passwords, private keys, or funds were directly stolen .
The company estimates the financial impact of the breach to be between $180 million and $400 million, accounting for remediation efforts and customer reimbursements . Coinbase refused a $20 million ransom demand and has offered a $20 million reward for information leading to the attackers' conviction . The U.S. Department of Justice has initiated an investigation into the incident .
Conclusion
Coinbase continues to be a pivotal player in the cryptocurrency ecosystem, balancing innovation with regulatory compliance. Its inclusion in the S&P 500 underscores its significance in the financial sector, while the recent cyberattack highlights the ongoing challenges in securing digital platforms. As the crypto industry evolves, Coinbase's ability to adapt and maintain user trust will be crucial to its sustained growth.
