Coinbase One will launch in 35 countries, starting with US, UK, Germany and Ireland
Coinbase, the world’s second-largest crypto exchange, is launching its subscription service, Coinbase One, in 35 countries in a bid to retain users and grow its recurring revenue streams as the crypto economy struggles through a bearish market.
Coinbase One was originally introduced in fall 2021 in beta, and will be available publicly today onwards in the U.S., United Kingdom, Germany and Ireland, the company exclusively told TechCrunch+. The company will roll the service out in 31 other European countries in the coming months.
The subscription service offers a host 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.
In the past, a lot of Coinbase’s revenue came from trading fees, especially during the bull market, but as the crypto winter drags on, 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. Through the bull market 18 months to two years ago, there was tons of 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 revenues grew over 17x to $793 million in 2022 from less than $50 million in 2020, per the company’s Q4 2022 shareholder letter.
“We are making a trade-off with zero-fee trading to set it up so customers win, and we think we’ll win in the long term,” McDonnell said.
European focus and future plans
Coinbase is specifically focusing on expanding its presence in Europe, McDonnell said.