Coinbase launches subscription service with focus on European expansion

Coinbase One will launch in 35 international locations, beginning with US, UK, Germany and Eire

Coinbase, the world’s second-largest crypto change, is launching its subscription service, Coinbase One, in 35 international locations in a bid to retain customers and develop its recurring income streams because the crypto financial system struggles by way of a bearish market.

Coinbase One was initially launched in fall 2021 in beta, and will likely be accessible publicly immediately onwards within the U.S., United Kingdom, Germany and Eire, the corporate solely advised TechCrunch+. The corporate will roll the service out in 31 different European international locations within the coming months.

The subscription service gives a bunch of options, together with no buying and selling expenses, increased staking rewards, 24/7 buyer assist, and pre-filed tax return paperwork, in keeping with Phil McDonnell, senior director of product administration at Coinbase.

Prior to now, plenty of Coinbase’s income got here from buying and selling charges, particularly through the bull market, however because the crypto winter drags on, the corporate is seeking to different areas to drive progress and diversify its income streams.

“Possibly 18 months in the past, it was very transactional,” McDonnell mentioned. “Folks are available, commerce, pay a charge, and that was the connection. Via the bull market 18 months to 2 years in the past, there was tons of progress, however we needed clients to remain […] That was the inspiration. How will we construct an extended, deeper relationship with our clients and make it a win-win?”

That technique appears to be working, no less than for now. Coinbase’s subscription and providers income rose a whopping 138% to $361.7 million within the first quarter of 2023, from $152 million a yr earlier. General, subscription and providers revenues grew over 17x to $793 million in 2022 from lower than $50 million in 2020, per the corporate’s Q4 2022 shareholder letter.

“We’re making a trade-off with zero-fee buying and selling to set it up so clients win, and we predict we’ll win in the long run,” McDonnell mentioned.