Coinbase One is launching in 35 countries starting with the US, UK, Germany and Ireland
Coinbase, the world’s second-largest crypto exchange, is launching its subscription service, Coinbase One, in 35 countries in an effort to retain users and grow its recurring revenue streams as the crypto economy struggles through a bearish market.
Coinbase One was originally launched in Fall 2021 in beta and will be publicly available starting today in the US, UK, Germany and Ireland, the company told MinRegion+ exclusively. The company will roll out the service in 31 other European countries in the coming months.
The subscription service offers a host of features, including no trading fees, higher staking rewards, 24/7 customer support and pre-filed tax return documents, said Phil McDonnell, senior director of product management at Coinbase.
In the past, much of Coinbase’s revenue came from trading fees, especially during the bull market, but as the crypto winter continues, the company is looking to other areas to drive growth and diversify its revenue streams.
“Maybe 18 months ago it was very transactional,” McDonnell said. “People come in, trade, pay a fee, and that was the relationship. During the bull market from 18 months to two years ago, there was tremendous growth, but we wanted customers to stay […] That was the inspiration. How do we build a longer, deeper relationship with our customers and make it a win-win?”
That strategy seems to be working, at least for now. Coinbase’s subscription and services revenue rose a whopping 138% to $361.7 million in the first quarter of 2023, from $152 million a year earlier. Overall, subscription and services revenue increased more than 17x to $793 million in 2022, from less than $50 million in 2020, according to the company’s Q4 2022 shareholder letter.
“We’re compromising with no-cost trading to set it up so that customers win, and we think we’ll win in the long run,” McDonnell said.
European focus and future plans
Coinbase is specifically focused on expanding its presence in Europe, McDonnell said.