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    Patrick Molley • Piper Sandler

    Patrick Molley's questions to Coinbase Global Inc (COIN) leadership

    Patrick Molley's questions to Coinbase Global Inc (COIN) leadership • Q2 2025

    Question

    Patrick Molley from Piper Sandler questioned the economics of integrating decentralized exchanges (DEXs) into the Coinbase platform, asking about the monetization model and the potential risk of cannibalizing volume from its own centralized retail exchange.

    Answer

    CEO Brian Armstrong explained that monetization will primarily come from a trading fee at the brokerage layer, similar to its centralized offering. He also mentioned potential secondary revenue from sequencer fees if a DEX runs on Base and from Coinbase's own investments in certain DEX protocols. The strategy is framed as routing customer orders to the best execution venue.

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    Patrick Molley's questions to Coinbase Global Inc (COIN) leadership • Q2 2025

    Question

    Patrick Molley from Piper Sandler asked about the economics of integrating decentralized exchanges (DEXs) into the Coinbase platform, inquiring about the monetization model and the potential risk of cannibalizing volume from its own centralized retail exchange.

    Answer

    CEO Brian Armstrong explained that monetization for DEX trades would occur at the brokerage layer through a trading fee, similar to its centralized exchange model. He noted additional potential revenue from sequencer fees if the DEX operates on the Base layer and from Coinbase's own investments in some of these decentralized exchanges. CFO Alesia Haas concurred with this assessment.

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