Coinbase Launches Subscription Service in 35 Countries
Coinbase, the world’s second-largest cryptocurrency exchange, has launched its subscription service, Coinbase One, in 35 countries. The service was first introduced in beta in fall 2021 and will now be available to the public in the US, UK, Germany, and Ireland. The company plans to roll out the service in 31 other European countries in the coming months.
The subscription service offers a range of features, including no trading charges, higher staking rewards, 24/7 customer support, and pre-filed tax return documents. According to Phil McDonnell, senior director of product management at Coinbase, the company is looking to diversify its revenue streams and retain users as the crypto economy struggles through a bearish market.
In the past, Coinbase’s revenue came mainly from trading fees, especially during the bull market. However, as the crypto winter drags on, the company is looking to other areas to drive growth. McDonnell said that the inspiration behind Coinbase One was to build a longer, deeper relationship with customers and make it a win-win situation.
The strategy seems to be working, as Coinbase’s subscription and services revenue rose 138% to $361.7 million in the first quarter of 2023 from $152 million a year earlier. Overall, subscription and services revenues grew over 17x to $793 million in 2022 from less than $50 million in 2020, according to the company’s Q4 2022 shareholder letter.
McDonnell said that Coinbase is specifically focusing on expanding its presence in Europe. The company is looking to build a longer-term relationship with customers and make it a win-win situation for both parties. The subscription service is part of this strategy, as it offers a range of features that are designed to retain users and grow recurring revenue streams.
Coinbase One offers no trading charges, higher staking rewards, 24/7 customer support, and pre-filed tax return documents. The company is making a trade-off with zero-fee trading to set it up so customers win, and they believe that they will win in the long term. The company plans to roll out the service in 31 other European countries in the coming months.
Overall, Coinbase is looking to diversify its revenue streams and retain users as the crypto economy struggles through a bearish market. The subscription service is part of this strategy, as it offers a range of features that are designed to retain users and grow recurring revenue streams. Coinbase is specifically focusing on expanding its presence in Europe, and the company plans to roll out the service in 31 other European countries in the coming months.