Coinbase Rolls Out Test of Fee-free Trading
Trading fees have historically make up the bulk of Coinbase’s revenue, but the exchange is trying to diversity its business lines
Blockworks exclusive art by axel rangel
- Coinbase doubles down on its efforts to diversify revenue streams away from trading fees
- Those that qualify for the beta launch will be contacted by email
As Coinbase looks to distance itself from transaction-based revenue, the exchange has begun recruiting the first customers for Coinbase One, a subscription service that comes with $0 trading fees.
Perks of the subscription also include up to $1 million in account protection and 24/7 phone support. A spokesperson from Coinbase declined to reveal the price, which will be billed monthly.
Coinbase One is currently in its beta launch, the exchange said.
The exchange has historically reported trading fees as its main source of revenue, but it has been trying for months to diversify its profit streams. In May 2021, the revamped version of Coinbase Prime, the exchange’s prime brokerage service, launched.
In January 2022, Coinbase announced that it would be buying Commodity and Futures Trading Commission-regulated derivatives exchange FairX, offering another opportunity to diversify revenue.
Source: Coinbase“The transaction revenue has historically may have the lion’s share of our revenue,” said Alesia Haas, chief financial officer of Coinbase, during the exchange’s 2021 fourth quarter earnings call. “We’re taking steps to diversify this revenue and also grow our non-transaction revenue streams.”
Coinbase executives also braced shareholders for a quieter first quarter of 2022 on the earnings call, saying that they are expecting lower monthly transacting users and total trading volume in the first three months of the year.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
