Share this article
Coinbase Junk Bonds Further Downgraded by S&P on Weak Profitability, Regulatory Risks
The agency lowered Coinbase’s credit rating from BB to BB-, a further step away from investment grade.
By Helene Braun
Updated May 9, 2023, 4:05 a.m. Published Jan 11, 2023, 11:26 p.m.
In this article
S&P Global Ratings, the biggest rating agency globally, has downgraded its long-term credit rating and senior unsecured debt rating on Coinbase (COIN), citing weak profitability from lowered trading volumes and regulatory risks, the agency said Wednesday.
Coinbase’s rating was lowered from BB, which indicates major ongoing uncertainties to adverse business, financial and economic conditions, to BB-, a further step away from investment grade. Both ratings are considered junk bonds.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Coinbase is one of two crypto-related junk bond issuers, along with MicroStrategy (MSTR). Coinbase shares were flat in after-hours trading Wednesday.
The ratings agency said weakened trading volumes in the aftermath of FTX’s collapse and pressure on Coinbase’s profitability, as well as regulatory risks, were the main reasons for the downgrade.
“We believe FTX’s bankruptcy in November has severely hit the crypto industry’s perceived credibility, causing a lack of retail engagement,” S&P wrote. “As a result, trading volumes across exchanges, including Coinbase, have declined sharply.”
Coinbase earns most of its revenue from retail trading fees, and trading volume has dropped even more sharply in recent weeks. As a result, S&P expects the U.S.-based exchange’s profitability to “remain pressured” in 2023, saying the company could “post very small positive S&P Global adjusted EBITDA,” or earnings before interest, taxes, depreciation and amortization, this year.
Coinbase’s third-quarter revenue in 2022 was down 44% compared to the second quarter, which was driven by lower trading volume, the company said in November.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Stablecoin Adoption Is ‘Exploding' — Here's Why Wall Street Is Going All-In
Alchemy co-founder and president Joe Lau said stablecoin adoption is exploding as banks, fintechs and payment platforms push beyond the USDT/USDC exchange era.
What to know:
- Stablecoin usage is quickly broadening from crypto-native exchanges into payments, payroll and treasury as companies chase 24/7, digital-native settlement, according to Alchemy Co-founder and President Joe Lau.
- Banks are pushing tokenized deposits as a regulated, bank-native alternative that delivers stablecoin-like benefits for institutional clients.
- The endgame is a two-track system — stablecoins for open, two-party settlement; deposit tokens for bank ecosystems, until scale forces convergence and competition, Lau said.
Top Stories
