Coinbase has announced its subscription service in Europe – Coinbase One. According to the company, Coinbase One will help expand the company’s reach outside the US and also add to its revenue stream in the midst of the current crypto market situation.
Coinbase is a cryptocurrency exchange that has over 110 million users in over 100 countries. It offers a user-friendly interface, a wide selection of cryptocurrencies to trade, competitive fees, secure storage options, advanced trading tools, and customer support. It is a regulated exchange, meaning it is subject to certain financial regulations.
Coinbase One was first launched as a beta version in the fall of 2021 and will be available to the public in the US, Germany, the United Kingdom, and Ireland. Part of its roadmap is to expand into 31 other European countries in the near future. Coinbase One offers a number of benefits, such as no trading fees, increased staking incentives, 24/7 customer assistance, and pre-filed tax returns.
We want customers to stay at Coinbase
The major source of revenue generation of Coinbase has been trading fees, however, Coinbase wants to change how it relates to its customers. “People come in, trade, pay a fee, and that was the relationship,” Phil McDonnell, Senior Director, Product Management at Coinbase said, but Coinbase wants to make its customers stay, and that is why Coinbase One was created.
Over time, the strategy has paid off as revenue of the subscription business rose by 138% to $361.7 million at the end of Q1 2023 from $152 million in Q1 2022. McDonnell noted that it is a trade-off to let trading fees go while keeping customers who will pay as a subscription for the services they get from Coinbase.