Coinbase: ‘Tradfi’ earnings cushion blow from crypto slump
Rising interest rates have hit global stocks hard and cryptocurrencies even harder. Coinbase, the largest publicly listed US cryptocurrency exchange, has felt the squeeze on both fronts.
Ironically, earning interest on cash and Treasury holdings — a conventional “Tradfi” activity — is limiting the losses of this would-be financial revolutionary.
Falling crypto prices, a smaller user base and less trading volume resulted in a 55 per cent slump in third-quarter revenue. Losses totalled $545mn, compared to a profit of $406mn in the same period of last year. Coinbase warned trading volume would decline further.
This story originally appeared on: Financial Times - Author:Tax Cognition
