Coinbase Accelerates Financial Growth, Supports Major USDC Income Pilot in New York

Momentum around Coinbase is growing as the company enters a new phase of financial stability and public sector experimentation. The latest data shows an increase in revenue while costs remain under control. And as expected, this combination has created a stronger foundation than in previous market cycles.

Coinbase strengthens its financial position while funding a $12K USDC pilot project

Coinbase is now posting five consecutive quarters of revenue growth while keeping operating expenses below levels seen in the previous cycle. Rising sales and disciplined expense management indicate a stronger position than during the 2021 peak, when spending exploded across the industry.

Milk Road's charts indicate revenues are approaching late 2021 levels after a sharp rebound from the 2022-2023 downturn.

Alongside its financial progress, Coinbase has supported one of the largest crypto-based income pilots in the United States. Through a partnership with GiveDirectly, the program provides $12,000 in USDC to low-income New York residents.

The funding comes from a donation made by Coinbase after the closure of its GiveCrypto initiative. Administration, distribution, and participant support are entirely the responsibility of GiveDirectly, keeping Coinbase in a financial-only role.

Stablecoin pilot in NYC tests direct payments without banks

GiveDirectly has enrolled approximately 160 residents across the five boroughs. Participants receive an initial payment of $8,000, followed by $800 per month for five months, totaling $12,000 in stablecoin.

Payments began at the end of 2024 and continue until 2025, reaching digital wallets directly without the intermediary of banks. Wallet eligibility, compliance, onboarding, and configuration are all handled by GiveDirectly.

The program follows a clear structure, summarized by the following points:

• Support reaches low-income households across New York's five boroughs.
• Each participant receives $12,000 in USDC via a two-phase distribution.
• Transfers go directly to recipients’ digital wallets.
• GiveDirectly handles payment enrollment, selection, and logistics.
• The funding comes from Coinbase's previous charitable allocation, after GiveCrypto ended.

GiveDirectly describes the initiative as a targeted test of guaranteed income rather than a universal model. Even so, it is among the largest direct-to-wallet income pilots funded by a crypto company in the United States.

x402 Protocol Breaks New Records as Coinbase Posts Stronger Quarterly Results

Coinbase's financial performance has also demonstrated greater stability. Operating costs remain low in the technology and development, sales and marketing, and general and administrative categories. Transaction fees represent a smaller share of total costs than in previous cycles.

During the last quarter, Coinbase reported $1.39 billion in transactional revenuedown 9% compared to the previous quarter but up 34% year-on-year. Broader trends point to rising incomes while spending remains below previous peaks.

Activity on x402, Coinbase's payments protocol, provided another source of momentum. Between October 14 and 20, x402 recorded 499,000 transactions, an increase of 10,780% compared to the previous month. October 18 set a daily record with 239,505 transactions and $332,000 in volume.

For context, Coinbase's x402 protocol puts the long-unused HTTP 402 “Payment Required” code into practice for instant on-chain payments. Investor activity remained steady as well, with Ark Invest purchasing 42,000 Coinbase shares for $10 million.