A rebound in crypto prices in the last few months, thanks to optimism around the U.S. Securities and Exchange's approval of the first spot bitcoin-exchange traded funds (ETFs), helped rekindle investor enthusiasm for crypto.
Total transaction revenue for Coinbase jumped 64% to $529.3 million, helped by both consumer and institutional investors.
The crypto exchange also benefited from its partnership with Circle, which issues the USD Coin (USDC) stablecoin. Coinbase earns interest on reserves from USDC, which it governs jointly with fintech firm Circle.
USDC, a crypto token designed to have a relatively stable price, is backed by dollar and equivalent assets held in banks and other financial institutions.
The U.S. Federal Reserve has kept its benchmark rate elevated after tightening monetary policy at an unprecedented pace, allowing companies to rake in bigger incomes from their interest-earnings assets.
Stablecoin revenue jumped nearly 18% to $171.6 million, Coinbase said. Interest income the company earns on loans and funds held in custody on behalf of clients also jumped 17% to $42.6 million.
Overall, the company reported a profit of $273.4 million, or $1.04 per share, in the three months ended Dec. 31, compared with a loss of $557 million, or $2.46 per share, a year ago.
