Coinbase Global, Inc. (COIN) Earnings Call Transcript & Summary

Thanks, Max. The best place to trade is also becoming the best place to manage your entire financial life. You used to need a different app for everything, want to trade, want to spend, want to save and want to borrow, and used to have to choose. Money that earns and grows, but sits locked away where you can't use it, or money you can spend any time but earns you nothing. On Coinbase, you don't have to choose. Your money doesn't sit idle. It earns and grows until you use it. It earns Bitcoin when you spend it. It can be borrowed against for cash without selling. And when your paycheck lands, it's put to work automatically, just how you like it. Today, we're going to cover 3 core components: more ways to earn Bitcoin Rewards, crypto-backed loans, and new protections to secure your money. First, let's talk about how you spend and how we can make it better. Last summer, we launched the Coinbase One card, turning every purchase into an actual investment in your future, Bitcoin, an asset you own that can grow over time. And our customers can't get enough of it. To date, Coinbase One members have earned nearly $60 million in Bitcoin rewards. But we want more people to have access to such a powerful passive reward. And traditional FICO credit models are keeping people out. Right now, over 100 million Americans struggle with so-called good or fair credit scores. That means 100 million people are systematically locked out of the best rewards. Think of the entrepreneur with high cash flow but a high debt-to-income ratio or the modern investor whose net worth is mostly in crypto or others who simply do not have access based on their credit score. We want everyone to be able to earn Bitcoin back on every purchase no matter what a legacy credit bureau says. Today, we're updating the system. You can now get the Coinbase One card secured by USDC. A majority of customers who aren't approved for a traditional line of credit will now be able to get the same great Coinbase One card secured by USDC and start earning Bitcoin back on every purchase. And they can continue earning rewards on that USDC, paid out every single week. So it's 1 card, doing 3 things for your future. You're stacking Bitcoin with every purchase. You're earning USDC rewards every week, and you're building your credit score with every on-time payment. But we're just getting started. Coinbase was founded to help the world buy more Bitcoin. And 14 years later, we're still looking for new ways for you to earn even more of it. So we're launching a new way for our cardholders to earn 5% Bitcoin back in our new travel portal, the first travel platform to offer Bitcoin Rewards. For many, the most stressful part of travel is figuring out how to get the most value out of your rewards, chasing the right card, the right transfer, the right time to book, no more. With the new travel portal, every trip you book earns you Bitcoin. Your next $400 flight could earn $20. Your next $5,000 vacation could earn $250, all in Bitcoin, no rewards to chase, no miles to game, just 5% back in Bitcoin on every trip you book. And every booking you make has access to powerful travel protections and benefits through the American Express network. The travel portal is available today for all cardholders. And it's the first of many boosted rewards coming later this year. But the best way to get the most of your Coinbase One card is to store more assets on the platform, the more you store, the more you earn, the more you save. It's a powerful thing. We're on a mission to make Coinbase the best place to spend, earn, store and save your money. And it's working. We recently launched direct deposit to make investing automatic, and here's what's exciting. These customers aren't just parking their paychecks. The majority are putting that money to work, the moment it lands, investing it right away. Because when you store your cash in the same place you invest in stocks, commodities and crypto, it all starts to work a lot harder. It can even serve as collateral, which takes us to our next update, borrowing. We want Coinbase to be your primary financial account, which means we need to be the best place to borrow capital too. Customers have borrowed $2.5 billion on Base to date against over $2 billion in collateral. That means they have instant access to cash without selling the assets they believe in. But if you're staking, you're stuck. We're seeing over $6 billion in stake assets on our platform that can't be used as collateral. So today, we're turning on borrowing against stake assets, too, starting with Solana and Ethereum. That means you can get instant liquidity even while earnings taking rewards available now to all of our customers. This means 3 powerful things for our customers with positions near and dear. You can get instant liquidity while maintaining exposure to upside and earn passive income of up to 3.8% APY paid out every single week. But crypto is volatile, prices can swing overnight. And staying on top of your loan-to-value ratio can start to feel like a full-time job. We want to change that. Now every loan comes with liquidation protection built in. If your collateral value drops in the middle of the night, Coinbase will automatically top up your collateral from your account balance instead of selling. Thanks to this. We've already been able to prevent over $24 million in collateral liquidations. When borrowing with Coinbase you keep your assets and you stay in the game. And that matters more than ever because people are now borrowing against crypto for the biggest decisions of their lives, like purchasing a home. For traditional mortgage, people invest for years just to afford a down payment and commonly have to sell those investments to make it work. That could mean missing out on those asset gains as the market grows over time. We think we can do better. I'm excited to announce we've partnered with Better to offer the first ever crypto back mortgages accepted by Fannie Mae for home purchases. You keep your assets, own your asset gains and avoid a taxable sale, and we make it simple. Instead of a traditional cash down payment, you can pledge Bitcoin as collateral and get 40% of its value credited towards it. The Bitcoin sits in escrow for the remainder of the mortgage with the opportunity to continue gaining value that belongs to you, not your lender, plus Coinbase One members get 1% back on the entire amount of the mortgage up to $10,000. And this house, it's no stock photo. We didn't AI generate it. It's a real house purchased by a real Coinbase customer and the first house in America purchased with a crypto-backed mortgage accepted by Fannie Mae. They closed earlier this month. We can't wait to make this product available to all Coinbase customers later this summer. One day we might see entire crypto-backed neighborhoods. I mentioned earlier that we're on a mission to make the Coinbase app the best place to spend, earn, store, save and borrow. We want our customers to feel comfortable storing their entire network on Coinbase. To earn the right to do this, we are continuously taking new measures to improve our security. So we're introducing transfer protection, a new suite of tools to secure everything leaving your account. From time delay withdrawals, which gives you the opportunity to double check a given transfer to daily transfer thresholds preventing any outflows above your limit without permission. You can even set up multiuser approvals like 2-factor authentication for transfers. Your money is always under your control. Coinbase isn't just the best place to trade everything. Everything you need to take control of your financial life is now in one place, where your spending becomes an investment, where your assets keep working even when you borrow against them, and where your money is protected with up to $250,000 in account protection for Coinbase One premium members. Up next, we're going to hear from Alec about how we're helping companies move on chain.

Thanks, Roy. So all the incredible products you've heard about today exist because Coinbase is focused on increasing economic freedom in the world. That means making money move faster for less so you can put it to work. But our job isn't finished. To update the financial system, we want to make it simple for every company to participate in the onchain economy. Companies have the same problems consumers do. Moving money around the world is slow, expensive and complicated. But solving these problems is one of the things crypto is best at. We spent nearly 15 years building crypto infrastructure at scale, to serve millions of Coinbase customers. And we've taken that core infrastructure that powers our business and packaged it up for any company to build in crypto. We call this product Coinbase Developer Platform, or CDP. Today, we're announcing our all-new Coinbase Developer Platform. This product delivers a single access point to build with our wallet infrastructure, payment capabilities, trading systems and stablecoin issuance. The entire product is unified by a simple approach to Webhooks billing and treasury management, and is now accessible to AI agents through our powerful CLI and MCP. We're proud that many of the world's best companies are already building on CDP, including BlackRock, PNC and Shopify. Today, I'm going to 0 in on 1 use case in particular, stablecoin payments. The growth that we've seen in stablecoin payments is unlike anything else in crypto. On Coinbase products alone, we processed nearly $1 trillion of stablecoin volume in the last year. It's because stablecoin solves some of the biggest frictions in global finance, slow, expensive and complex payments are a tax on companies that stablecoins can fix. The Genius Act has now provided clarity and innovative companies are ready to build. But to do so, they need deep crypto expertise, regulated custody and robust crypto-native compliance. Of course, we've already built this for ourselves at Coinbase. And today, I'm excited to announce Coinbase Payments. Coinbase Payments is a complete stable coin payment solution within CDP that makes it easy for any company to embed stablecoins into their existing financial flows. Our payment solution is built on 4 components: USDC, the world's most trusted regulated stablecoin with $20 billion of liquidity right here on Coinbase; Base, our blockchain built for enterprise payments with over $19 trillion in stablecoin settlements this year; Wallets, our institutional-grade custody and payment rails in nearly 50 countries built on the exact same tech that powers coinbase.com. And finally, a powerful API layer that unlocks a full range of stablecoin payments use cases. This is the new standard for stablecoin payments. Payments on CDP are the fast trusted path to building the stablecoins, and companies around the world are already putting this solution to work. Over the last few months, we kicked off partnerships with AWS, Intuit and Checkout.com, as well as other leading banks, payment companies and fintechs. Now I want to take you a click deeper and show you how we're partnering to build the future of payments. Checkout.com is a leader in global payments. They handle billions for names like Spotify, eBay and Uber. They wanted a way to bypass fragmented and expensive payment methods. And collect payments directly from 150 million stablecoin wallets around the world. And so they built on CDP to launch one click stablecoin acceptance globally for their merchants. Legacy cross-border payouts are another problem that can frankly be a nightmare for businesses. So we've built the virtual accounts, the orchestration and fiat on and off ramps to vastly simplify these flows with stablecoins. And now companies like dLocal can build on CDP to upgrade their payouts and treasury management without the friction of legacy rails. And the challenge I hear about probably most often is that companies want to offer stablecoins and crypto to their customers, but aren't able to deal with the regulation and licensing required to get it off the ground. So I'm excited to announce CDP's new fully custodial infrastructure solution. This product enables our customers to create custodial wallets in nearly 50 countries, leverage our compliance infrastructure and tap into our network of 80 regulatory licenses around the world. We're launching with Intuit, Klarna and Webull and it will enable these partners to offer stablecoin payments in crypto trading to their customers in a seamless native experience, while Coinbase does the hard work of compliance, regulation and licensing fully behind the scenes. And we're not stopping with crypto and stablecoins. We're also helping businesses navigate the biggest technology shift of our time, the shift to AI. So we built another layer into the stack, X402. X402 is an open source payment standard enshrined in a foundation in partnership with Google, CloudFlare, Shopify and many others. As of today, X402 has processed more than 185 million transactions over the past year. And this is just the beginning of what's possible. Agents can now work on our behalf, researching markets, booking travel, accessing data, breathing through paywalls. And we're building the products to make this real at scale. I'm excited that our flagship launch partner for enterprise agentic commerce is AWS. AWS Agent Core and Cloud front have integrated our wallets and X402 to enable their agent network to spend and earn. And that's not all. All Coinbase payments APIs are now agentic-enabled out of the box. This means companies like OpenRouter, the largest AI model exchange and a Coinbase payments customer, will be able to seamlessly accept payments from both humans and agents. When a human wants to pay, they get the best stablecoin checkout in the industry. And when an agent needs to buy compute, it uses the exact same infrastructure. Open router doesn't need an agentic payments team. They just need to enable stablecoin acceptance with Coinbase and with the click of a button, can accept payments from any stablecoin holder in the world, human or agent. We're fired up about where we're building on CDP and how we're helping shape the future of payments. Let our hard work enable you to update the system. That's what CDP is all about. Now I'm going to hand it over to Jesse to talk about what we're building on Base.

Thanks, Alec. We've talked about a lot of great products today. The tokenized stocks in Max's section, crypto-backed loans from Roy, Cross-border stablecoin and Agentic payments from Alec, all of these products run on Base. I'm Jesse Pollak, the creator of Base, the blockchain for global finance. Base is built at Coinbase. It's trusted by thousands of enterprises, and it's open to everyone. We build Base to be the financial infrastructure for the global economy. It has sub-second speed, sub-cent fees, and is open 24/7, 365. You can execute any trade instantly, make payments faster and cheaper and use agents to do anything with money. And today, we've got exciting updates to share in all of those areas. And let's start with trading. The world's traders are already here. Base is the largest on chain venue in the world for spot bitcoin and Ethereum trading, with 44% of all Bitcoin spot DEX volume, more than every other chain. And we're not building the best place to trade only crypto. Every asset in the world can trade on Base, equities, commodities, predictions, anything. And as we announced earlier today, we're bringing Tokenized Stocks from Coinbase to Base. Once on Base, these stocks become globally available, 24/7 markets, that settle instantly and at a fraction of the cost of the legacy system. But one thing we've heard from issuers is that it's still too hard to tokenize things. Compliance, interoperability and security remain major blockers. And to solve that problem, I'm excited to announce the Base Native Token Standard, designed for the future of finance built directly into the chain. This is B20. The B20 token standard comes with tools for token issuers like compliance, memos for payment reconciliation and custom metadata extensions. Anyone can deploy any kind of asset on B20. And we expect it to thrive with stablecoins, real-world assets and on chain native tokens. B20 tokens are going live this week as part of the base barrel upgrade and are already being adopted by issuers from Coinbase, to clinker, to some of the biggest stable coins launching soon. And where do people actually go to trade all of this? Well, that's the base app. We've made a number of updates to the base app in Q2. We have native Apple Pay funding, candlestick charts, seamless search, better discovery, limit orders. And I'm excited to launch a few more things that make Base app the best place to trade. First, we're going multi-network. We've always said that Base is a bridge, not an island. And so the Base app now supports Solana and Bitcoin alongside Base Ethereum in dozens of other EVM chains. Second, we're launching Base app on the web at Base.app, so you can bring your account portfolio and trading onto any screen, complemented by a newly updated homepage, so you can get everything in a cleaner view to see all the assets that you hold. And finally, the Base app is getting more with tokenized stocks, commodities, predictions and perpetuals. So you can trade everything all in one place. And all of this, it's available in seconds. The powerful thing about the Base app is that because it's self custodial, you can sign up from almost any country in the world instantly with no complex forms and no sharing of personal information. The upgraded Base app gives you any asset on any screen at any time available to everyone. Next, let's talk about agents. As Max and Alec outlined, the next generation of users on the Internet are going to be agents. And on Base, agents are already trading tokens, they're paying each other for services, and they're even spinning off their own businesses. Almost 90% of agentic transactions on X402 settle on base. And we're already seeing a thriving ecosystem of agents starting to grow an economy. Venice is a private AI that serves millions of users and they invented the world's first tokenized inference. Virtuals has built an economy of 40,000 autonomous agents that are generating over $4 million in revenue. And Banker gives agents a business model enabling more than $30 million in agent earnings by letting agents fund themselves from their trading fees. And to make using agents on Base even easier, we just shipped the Base MCP. Any agent can now get connected to your wallet and get on chain instantly. And it works via simple promise in all of the tools that you're used to, Grok, Claude, Hermes, OpenChat, with Base MCP, your agent can execute transfers, trades, swaps and any other on chain action with simple permissions that you control. It's now possible to open a liquidity position on Aerodrome or Uniswap or take out a loan on Morpho, or book a flight, compile research or compile all of this stuff into one workflow that runs seamlessly on chain. The agentic economy is being built on Base, and the Base MCP gives your agent simple, secure access. But it's not just agents that are benefiting from crypto as frictionless money. On Base, we're seeing explosion of payment use cases across the board. And the overall scale of the activity is pretty incredible. Alec said it but I'll say it again. So far this year, Base has settled more than $19 trillion in stablecoin. $19 trillion, but this goes beyond dollars. There are now over 25 local stablecoins on Base, covering major currencies from around the world, the euro, the yen, the Mexican peso, Nigerian naira, Singapore dollar, all live on Base. In a future where every currency is connected to the same network, anyone, anywhere can use the currency they already live in to access to these incredible global financial services that we're building together. And it's happening. Stablecoin issuers like Wirex and Rain have done $600 million of stablecoins payments on Base in 2026 alone, enabling holders all around the world spend stablecoins for everyday purchases. Neobanks, like Tuo and Flex are using dollar stablecoins and bitcoin on Base to give their customers a global experience that has access to every single asset. And crypto exchanges like Bitso are using local stablecoins to enable easier onboarding and higher rewards for their customers. They recently launched MXNB, a Mexican peso stablecoin. And today, they're having even more utility by rolling out a vault that lets their customers earn on Mexican pesos in a simple experience. And so the assets are here. The agents are here. The stablecoins are here. But we've been working for years to answer an important question. How do we move transactions on chain without broadcasting everything to the world? The Base ecosystem has already been working on this with protocols like [ Aave Horizon ] and Inco, enabling fully private sovereign balances and transactions. This is essential work, and the teams are leading our ecosystem in pushing privacy innovation. But as we're building the blockchain for global finance, we've learned that bringing enterprises on chain requires privacy, but with the same level of compliance and controls that they get with their existing rails. And so today, we're launching private transactions on Base. Private transactions are powered by a new privacy architecture, we call ledgers, the perfect built for enterprise. Base ledgers let any enterprise execute private transactions, all while plugging directly into the global liquidity that Base provides. They give enterprises the best of all worlds, privacy for their customers, auditability and compliance tools for their regulators and the superpowers of the global economy that's being built on Base. Coinbase Developer Platform is live this week with the first private ledger, and Base and CDP executed the first private transactions with customers this week. Now businesses can use stablecoins and more to transform their business without giving up their privacy. And it's live today with simple APIs that make it just work. And if you're an enterprise that wants full control and customization, you can run your own ledger, either bringing your existing ledger or starting a new one on Base to do anything on chain with complete privacy for you and your customers. Now the answer to, can we do this on chain, is simply yes. Base is the place where everything is tokenized, where every payment cost a fraction of a cent, and where every agent can transact autonomously. This is what the future of finance looks like when the world moves on chain. But 99% of the world is still off chain. That's the opportunity in front of us. And with that, I'll hand it back to Brian to take us home.

Thank you, Jesse. All right. We've covered a lot of ground today at our System Update, and I hope you can see how Coinbase is working to update every aspect of the financial system from trading to payments to AI. On trading, the Everything Exchange now includes pre-IPO perps, stock options and tokenized equities. We've redesigned Coinbase Advance and unified our global liquidity. Beyond trading, we're bringing Coinbase One card to more people, along with crypto-backed mortgages and direct deposit. Coinbase Developer Platform is bringing the benefits of stablecoin payments to businesses everywhere. Now with a fully custodial account running on our compliance stack. And we announced private transactions on Base and an upgraded Base app with new web app, new Fiat stablecoins and support for more assets. And finally, Coinbase is also becoming the financial account for AI. Now for years, we've been thinking about how AI and finance will intersect. And our thesis is that AI creates programmable intelligence and labor. Crypto creates programmable money and markets, and the 2 complement each other perfectly to create a new agentic economy. So what do we mean by that? Well, today, we typically talk to one agent at a time. But in the future, a lead agent that we're talking to will actually orchestrate hundreds or thousands of other agents, each one specialized to a certain type of task. So they're going to need to pay each other, breeze through paywalls to pay money to various vendors out there, and maybe even raise money someday to get work done all on our behalf. So at our System Update today, you saw us announce 3 key components, which enabled this AI revolution. The first is Coinbase for agents. This helps you connect any AI agent to your existing Coinbase account. Second, we put AI directly in the Coinbase app with Coinbase Advisor. And third, we gave agents their own financial accounts with Base, MCP and X402. This complete set of tools makes Coinbase the financial account for the intelligence age. The agentic economy is finally taking shape with the power of crypto. And in fact, one fun note, as you've been listening to this presentation, these dots on screen behind me, they're actually showing live transactions happening right now on chain, many of them powered by agents. Now Coinbase, we're turning ideas into products faster than ever before. So before I end, please join me in a round of applause for our Coinbase employees, and there are many thousands of AI agents whose hard work and dedication made today's announcement possible. All right. Thanks for tuning in, and we'll see you at our next System Update.