© Reuters. FILE PHOTO: A smartphone displaying a Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Coinbase (NASDAQ:) Global swung to a profit in the fourth-quarter, helped by higher interest income that the crypto exchange earned on its stablecoin reserves and other products.
The company on Thursday 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.
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.
Coinbase earns interest on reserves from (USDC), a stablecoin 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.
Stablecoin revenue was $171.6 million versus $145.7 million last year, Coinbase said.